That's the key issue. How long before Uber runs out of cash? They've raised around $15 billion.[1] How much of that is left?
The experience of Austin, TX, where Uber and Lyft pulled out rather than fingerprint their drivers is indicative. Within weeks, there were seven companies replacing Uber. It just isn't that hard to replace Uber.[2] When Uber goes under, it will be a speed bump, not a disaster.
Amazon lost money for a long time, but they were building infrastructure - huge warehouses and giant data centers. That's ordinary industrial growth, like building a steel mill. Now that's paying off. What physical assets does Uber have? They don't even own the cars.
Uber's value will have been generating mindshare for consumers about ridesharing services. Not good for them, but we who are fond of consumer excess thank those investors for burning their dollars up with Uber instead of in a barrel.
The experience of Austin, TX, where Uber and Lyft pulled out rather than fingerprint their drivers is indicative. Within weeks, there were seven companies replacing Uber. It just isn't that hard to replace Uber.[2] When Uber goes under, it will be a speed bump, not a disaster.
Amazon lost money for a long time, but they were building infrastructure - huge warehouses and giant data centers. That's ordinary industrial growth, like building a steel mill. Now that's paying off. What physical assets does Uber have? They don't even own the cars.
[1] http://www.vanityfair.com/news/2016/06/why-is-uber-raising-s... [2] http://www.512tech.com/technology/tested-seven-austin-post-u...