And high-tech tends to command high price.
But they are IMHO very overconfident of their position.
And while I generally like taking Ubers, I would go so far to say that in many respects they are potential dead cab meat!
Why?
- Not because their leadership is in disarray and their founder and CEO was just forced to resign.
- Not because they have a disastrous corporate culture.
- Not because of their uber low or not profitable margins.
- Not because of the threat of autonomous driverless vehicles.
- Not because of the (alleged) stolen documents from Google.
- Not because Uber is (potentially) overvalued at nearly $70 billion (more than GM, Ford, or Honda)!
- Not because of its numerous competitors coming up from behind, including Lyft.
But a major reason is because:
They just gave you a not-so-hidden increase in price by tacking on a new tipping mechanism that will result in many people paying as much as a 20% hike to their overall fares.
Uber is now losing a sizable portion of their price point competitive advantage!
With the risks involved here, who could be so overconfident?
Perhaps, it's time to take a cab or hovercraft somewhere else.
(Source Photo: Andy Blumenthal)
(All represents my own opinions)
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