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 […]