Taking the wrong lesson from Uber
Sarah Tavel
1.4K85

When did we start using the term endure for a 4-year-old company?

Enduring billion dollar businesses are companies like J&J or Ford, Ferrari or Louis Vuitton (and are not always brands that save people money), not a startup unicorn that has yet to make a profit.

So the question really is can Uber actually endure until it gets profitable?

Currently, it is incurring huge losses trying to break into new markets and compete with existing solutions. Part of their marketing strategy is subsidizing ride costs with their $9 billion war chest to attract and retain customers, but when they are losing an estimated $1.5+ billion a year how long will any of that actually last?

Another large question is, is there any loyalty there to keep customers coming back when those ride fares increase (and they will)? As an NYC user of UBER since it launched here, I can say I have no loyalty whatsoever to the brand or service itself, I will use whatever will get me to where I want to go within a reasonable timeframe at a reasonable cost.

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