Uber Overconfidence

As everyone knows, Uber is essentially — for now — a high-tech taxi company.

And high-tech tends to command high price.

But they are IMHO very overconfident of their position.

And while I generally like taking Ubers, I would go so far to say that in many respects they are potential dead cab meat!

Why?

- Not because their leadership is in disarray and their founder and CEO was just forced to resign.

- Not because they have a disastrous corporate culture.

- Not because of their uber low or not profitable margins.

- Not because of the threat of autonomous driverless vehicles.

- Not because of the (alleged) stolen documents from Google.

- Not because Uber is (potentially) overvalued at nearly $70 billion (more than GM, Ford, or Honda)!

- Not because of its numerous competitors coming up from behind, including Lyft.

But a major reason is because:

They just gave you a not-so-hidden increase in price by tacking on a new tipping mechanism that will result in many people paying as much as a 20% hike to their overall fares.

Uber is now losing a sizable portion of their price point competitive advantage!

With the risks involved here, who could be so overconfident?

Perhaps, it’s time to take a cab or hovercraft somewhere else.

(Source Photo: Andy Blumenthal)

(All represents my own opinions)