Uber’s Biggest Problem: Its Business Model
The hard truth for Uber’s next CEO is that it might be more taxi company than tech giant
Uber’s original approach was more sprint than marathon. Believing he could pre-emptively wipe out the competition by amassing more money and market share early on, Mr. Kalanick employed a hyperactive management style that prized speed over integrity. But the finish line never really appeared.
.. Uber still believes that it has superior technology and data science that gives it lower costs per ride than competitors, says a source close to the company. If Uber is right and it can maintain an advantage like this in the long term, it could endure a long war of attrition with its competitors. But since neither Uber nor its competitors are public companies, no one knows the actual unit cost of their rides.
.. A logical response to all this competition would be vertical integration. Uber won’t lock down its drivers with employee contracts, but it could (eventually) control a fleet of self-driving cars.