excellent post
uber can only compete with the competitors entering the market (speaking at this phase, before self driving) on price and service....
to your point, the economic law that margin will continue to erode is even more relevant, because the barrier to entry is very low.
uber only has first mover advantage (which will diminish with margins). perhaps it has a “labor supply” advantage if they take care of drivers (I think they are doing well there for now). but the more you take care of your labor supply, the more your costs go up.....which leads back to the first point.
uber is simply a super efficient taxi.
and taxis are NOT disruptive.
theyve been around forever.......
Its a greater fool proposition IMHO.. but the folks who got in can now cash in their still grossly overvalued stock and become billionaires.... like the one guy just did... cashed out over 1/2 a billion in stock, while the company keeps losing money...
And the WeWork CEO who lied, cheated and stole got a buyout of over a Billion to go away as softbank stupidly thought there was still some sort of spit shine left for them to find on that turd.