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Uber's New CEO

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Re: Uber's New CEO

#11

Post by SomeStupidPoint »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

Conceivably, I could decide to make three trips (to B, C, and D) instead of just two trips (to B and C) because Uber is cheaper/nicer/better/etc than other forms of travel.

My demand for travel is somewhat elastic, not completely set before I know the cost of travel.

Re: Uber's New CEO

#12

Post by ssalazar »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

In markets with unreliable, inconvenient, or overpriced taxi service your options before Uber were to drive yourself, have a friend drive you, use public transportation, rough it in a taxi that may or may not show up and do so 30 minutes late, or simply not go. Since low quality was previously a barrier to using any taxi service at all, it absolutely creates demand.

Re: Uber's New CEO

#14

Post by JumpCrisscross »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

> your demand to go from A to B is already created before you choose between a Taxi and Uber

In the Bay Area and New York City, for me, this is untrue. Distances feel smaller when you can cross them with the press of a button. That, in turn, makes peripatetic schedules realistic.

Case in point: I took a Lyft Line from Berkeley to Mountain View yesterday. If that wasn't an option, I would have (a) taken the train or (b) not gone that far.

Re: Uber's New CEO

#15

Post by dagw »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

your demand to go from A to B is already created before you choose between a Taxi and Uber.

If getting from A to B is time consuming and expensive then I might not bother unless it's really important. By lowering the costs of getting from A to B I might do it more often than I would otherwise.

Re: Uber's New CEO

#16

Post by morgante »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

> You don't decide to go to B because Uber exists.

Actually, I absolutely do. I've gone on many trips that I simply wouldn't have gone on pre-Uber. On a regular basis I'll decide to go somewhere (ex. a party in Brooklyn) which I wouldn't have bothered with if it meant a slow and unreliable taxi (or an even slower subway ride).

Re: Uber's New CEO

#17

Post by erikb »

JumpCrisscross wrote: post #14
erikb wrote: post #10

Earlier quoted context omitted.

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

> your demand to go from A to B is already created before you choose between a Taxi and Uber In the Bay Area and New York City, for me, this is untrue. Distances feel smaller when you can cross them with the press of a button. That, in turn, makes peripatetic schedules realistic. Case in point: I took a Lyft Line from Berkeley to Mountain View yesterday. If that wasn't an option, I would have (a) taken the train or (…

Many comments say it as yours. After reading them I have to agree. I spend most of my time in areas with highly developed public transport. I assumed in the US at least taxis would offer a similar level of flexibility, but apparently not.

Re: Uber's New CEO

#18

Post by robryan »

dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

Yeah, I would never book a Taxi for spur of the moment travel in Melbourne but with Uber there will pretty much always be one within 5-10mins.

Re: Uber's New CEO

#19

Post by bravura »

'Khosrowshahi will be leaving behind a ton of money at Expedia, though presumably for three tons of money at Uber, if all goes well. But I assume it's not just about the money. If you want to be the CEO of Uber, presumably it is because you like the CEO game, and want to play it at the hardest possible difficulty setting.'

https://www.bloomberg.com/view/articles/2017-08-28/tender-of...

Re: Uber's New CEO

#20

Post by ghaff »

erikb wrote: post #10
dannyw wrote: post #4

This is a thoughtful analysis into the whole Uber CEO opinion, but it is opinionated. Aggregation theory is one way to derive Uber's value, but you can make a compelling argument that supply drives demand. The reason why I don't use taxis in Australia is partly because the experience is far better with Uber and the cost is cheaper, but also because Uber is the most reliable. Without drivers and such reliability, I ca…

With "driving demand" you don't mean "creating demand" but "directing demand to my business instead of the competitors", right? Because it sounds a little like you want to say "creating demand", but your demand to go from A to B is already created before you choose between a Taxi and Uber. You don't decide to go to B because Uber exists.

Demand is absolutely elastic (to a certain point) on a number of dimensions: price, time, comfort, hassle. There's an upper limit. The trip from A to B usually has some negative utility relative to being at B but the closer to zero you can make it, the more likely you are to make the trip.

Personally, I just don't have many situations where I would make a trip but my available alternatives are just a bit too costly/inconvenient--while Uber wouldn't be. But I understand they exist.

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