July 22, 2017

Uber wanted to be a monopoly — but it may have to settle for the next best thing

UBER Logo on black background
Image Courtesy of UBER

He wanted a monopoly. Thomson Reuters Uber CEO Travis Kalanick’s 21st-century car service is valued at more than $60 billion and has the traditional taxi business on its heels.

But despite Uber’s popularity, its original business plan is in jeopardy and it faces the unappealing prospect of having to spend massive amounts of cash while simultaneously managing Kalanick’s excesses and reforming its company culture.

"Uber has a great strategy and is a great company," Evan Rawley, a Columbia Business School Professor, told Business Insider. "But it wanted to be the only national ridesharing platform, and it hasn’t been able to eliminate the competition."

Rawley, who wrote his dissertation on the taxi-and-limousine business, said that Uber aimed to be a monopoly — a winner-takes-all-tech player — but that it will have to settle for being the "leader of an oligopoly."

"Network effects are important," he added. "Uber will be most profitable in the long run, but right now it’s spending way too much fighting Lyft and is engaged in a costly battle for market share." Uber’s weakness

Lyft could be Ford to Uber’s GM. Lyft Rawley said that in the real world where all consumers care about is whether their ride shows […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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