
…ays be on the defensive. By definition this means Uber cannot be the last ride-sharing company. And without a monopoly, they cannot create pricing power. Instead, transportation as a service becomes a race to the bottom, constantly fighting to keep or acquire new users.
The reason — competitive pressures and customer acquisition costs. Businesses without this defensibility almost always struggle with profit and unit economics. Look at Instacart or Uber, on the surface both great businesses. Dig deeper and you reveal weak fo…