The story behind Uber Cash: How it evolved into a secret weapon for growth marketing - unlocking endless possibilities for reducing CAC and increasing LTV.
It is interesting to see how many leading tech companies deliver great customer value, but have a lagging effect on delivering profitable business value.
I think what the Cory Doctorow piece points out is that Uber’s business model is fundamentally unsound, as they can’t charge enough nor pay drivers a living wage.
I suspect had they remained a high-end offering, things would have been fine.
But they needed to SCALE, and Travis Kalahnick is now one of the wealthiest people in the world.
Sadly the article you linked is not a quite accurate representation of reality. If you look at Uber, Instacart, and even Zepto (in the fast delivery category, one known to have failed many unicorns), they're all growing profitably.
As autonomous vehicles become prevalent in the next decade, these businesses will continue to exist as they become the SaaS / operating system for the massive logistic network.
Riveting & well-researched, Bandan.
Interesting juxtaposition to this piece I was simultaneously reading from Cory Doctorow over on Medium:
https://doctorow.medium.com/no-ubers-still-not-profitable-2b8054e375ea
Thanks Mike!
It is interesting to see how many leading tech companies deliver great customer value, but have a lagging effect on delivering profitable business value.
Good point, Bandan.
I think what the Cory Doctorow piece points out is that Uber’s business model is fundamentally unsound, as they can’t charge enough nor pay drivers a living wage.
I suspect had they remained a high-end offering, things would have been fine.
But they needed to SCALE, and Travis Kalahnick is now one of the wealthiest people in the world.
Sadly the article you linked is not a quite accurate representation of reality. If you look at Uber, Instacart, and even Zepto (in the fast delivery category, one known to have failed many unicorns), they're all growing profitably.
As autonomous vehicles become prevalent in the next decade, these businesses will continue to exist as they become the SaaS / operating system for the massive logistic network.
https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/zepto-becomes-unicorn-raises-200-mn-at-1-4-bn-valuation/103054635
https://techcrunch.com/2023/08/25/instacart-s1-five-takeaways/
https://techcrunch.com/2023/08/01/uber-profitable-earnings-analysis/
Hi Levi - you’re welcome to your own opinion, but not your own facts.
I’m dubious of the TechCrunch article because they have a narrative they’re trying to sell.
I suspect all the articles you mentioned have taken Uber press releases at face value.
Until you’ve taken a fine-tooth comb to go through the financials, it’s hard to know, right?
gripping read Bandan