Reply to post: Re: FAANG Doesn't include Microsoft

FAANGs for the memories: Breaking up big tech's biggest isn't a matter of if, but of when

Anonymous Coward
Anonymous Coward

Re: FAANG Doesn't include Microsoft

What happens when Uber has to start making money? Their strategy seems to be to drive taxis out of existence so they can raise prices, but there's no network effect advantage to ride sharing.

Someone just needs to organize the drivers in a given city to create their own app where they keep everything except minimal operating costs for themselves. Grubhub, Uber Eats, Deliveroo etc. are basically non-existent where I live because the several dozen restaurant owners got together to create their own delivery service that takes half the margin the competition does. Even those who aren't direct investors in it are using it for that reason. I've heard rumors they're going to expand that to ride sharing, and knock Uber and Lyft out of the area market as well.

Might not work in big cities that have a lot of tourism (tourists don't know to download the local ride sharing app) but then you just need someone to organize all the local players into a single nation wide and then worldwide app. The only advantage Uber has is that it is willing to lose several billion dollars a year - will that continue post IPO and investors except to see a return? The ease with which competition can spring up limits the possible profit from "gig economy" players - they can never justify valuations of tens let alone hundreds of billions of dollars for that reason.

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