Having done work for a few cab company owners, Uber never made sense. Many of these guys, the owners, probably make $75k in a great year - and Uber’s genius path to billions was to undercut them? Just image search “cab company owner” and see if you can find the billions.
I really just think the play on all these sorts of companies was just to get max amount of money in this era of intense amounts of dumb investor money before it dries up. The math on WeWork etc finding profitability never made sense. The investor money IS the end goal. I didn’t know things were already this bad for Uber. Looking like a big short on the stock would pay off nicely soon. I’ll leave that to the big guys.
“But you said you would never betray our customers! —Yes, because the customer is the shareholder.” – You know it’s bad when the series Silicon Valley mocks one’s business model for a joke.
> The math on WeWork etc. finding profitability never made sense.
“Don’t worry, we lose on every unit but we make it up on the quantity.”
Yes, we were in a bubble. More seriously though, Kondratief cycles are very long cycles, 50+ years, and the phase II is land grab. Economics didn’t make sense because investors are betting that they can extort customers later on.
Example: If WeWork succeeded to make building management code as difficult as construction code, they could have evicted all companies who try to maintain their own workspace (“Too bad, he didn’t know every 4th extinguisher has to be blue to be seen in case of red light event”) and WeWork would have rented companies their own workspaces. For that, you need to both dominate and modify the legal framework to prevent small actors from giving birth.