Thursday, September 17, 2015

Uber is on growth fast track

Here are some very recent numbers on Uber's revenue (LA Times):

"Total ride-share bookings are showing explosive growth, from $688 million in 2013 to a projected $10.84 billion this year and $26.12 billion next. That's nearly 38 times bigger in just four years."


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  2. Interesting comparison & industry analysis of Uber vs. Groupon, arguing that Uber's defensibility is suspect:

    The author contends that because of low barriers to entry, low switching costs, and minimal power, Uber will have its market stolen away. The arguments seem appropriate, but I would respond that Uber is indeed finding ways to build defensibility: focusing on UX, turning its data into logistical advantage, and continuing to disrupt itself (Uber -> UberX -> UberPOOL)

  3. @Will, agree with you.

    I would also add that the article you posted hand-waves away the most defensible aspect of Uber - the strong network effects. Yes, another app could be created, ie 'low barriers of entry and low switching costs', but kickstarting a two-sided market is extremely difficult, especially given Uber's momentum.

    And to add to the defensibility examples you made: I would imagine it would be fairly easy for Uber to bolster loyalty should it need to (Uber points?) or swallow up small differentiated competitors

  4. @Will, thanks for sharing the insightful article. I agree with you on Uber finding ways to continue to grow stronger, however, the low switching cost makes it almost impossible for Uber to hold onto its customers. I have been a Uber user for long until recently when surge pricing prompted me to look for alternatives. Lo and behold, Lyft offered me the same level of service at a very comparable cost and now I switch between the two based on ETA!
    I am of the opinion that the competition will get tougher with more entrants and it will get more difficult for Uber to continue on its growth path unless it finds more innovative ways to generate additional revenue.
    An interesting read: