Uber isn’t just an App.

This post is going to be a bit different. Just pure informative fireee, to enhance our awareness of the world we’re a part of. Topic: Uber

Uber was founded in 2009 by Travis Kalanick & Garret Camp, their goal to give their friends in San Francisco a better alternative than calling a cab that always took too long to arrive. No one would ever predict such a common sense idea would lead into one of the most exciting and transformative companies of the 21st century.

My experiences with Uber are banal: take an Uber to avoid driving drunk, or take an Uber instead of a taxi to the airport — simple. But the company’s ambitions go way past a 20-something year old getting home without obtaining a DUI.

Before getting into the future of Uber. We need to talk about why it’s so popular and widespread. It’s actually quite simple when you think about it. Uber doesn’t sell you a car ride from A to B; it sells you time. An Uber will 90% of the time pick you up in under 10 minutes compared to a taxi cab’s 40%.

Along with time, it saves you cold hard cash. Prior to Uber, the traditional & established way to get from A to B (if not your own car) was by taxi. I did a quick Point A (local library) to Point B (former high school) price comparison — approx. 3 miles.

Uber is dirt cheap compared to a cab! Average price per mile is $2–3 compared to a taxi’s $4-6. A 100% price difference.

Directly comparing an Uber with a taxi cab is like comparing an iPhone 7 with an iPhone 4s, respectively. Why?

Because a taxi is old news and a product with old features. You can’t check the price of your ride before you get into the vehicle. You can’t see previous ratings of the driver you are assigned. You can’t pay instantaneously with your credit card. And it takes longer to arrive! It’s just OLD.

Are you telling me you would buy an iPhone 4s for $1400 when you could buy an iPhone 7 for $700? I wouldn’t either. It’s no secret why Uber is dominating, it’s the superior product in the marketplace.

Valued at a whopping $18.2 billion, Uber has 8 million users worldwide alongside 1 million rides requested daily. Unbelievable numbers; and they are only going to increase because Uber is not going to stay put in a time where self-driving technology is on the verge of becoming the norm.

Their ideal future would be to be the leader in the self-driving sphere, with a fleet of 1 million self driving cars on their side.

What does self-driving technology mean for you and me? It means car ownership will drop by ALOT, current experts predict possibly up to a 90% fall and that’s significant for many reasons:

  1. A car spends 95% of its life parked, and in many metropolitan areas, such as L.A. or Chicago, almost one-third to one-fourth of all land is dedicated for the use of parking. These parking spaces and structures would become obsolete. Allowing the city to regain a sizeable amount of their land back to expand on housing, attractions, and schools. Making them more vibrant as well as economically efficient.
  2. Car rides will be relatively inexpensive (even more than today) price-per-mile wise, due to the overwhelming supply of these autonomous cars, and not to mention the possibility of them being all electric {different topic for a different day}. Expect subscription based Uber rides to come into fruition in the future. Where you pay a fee for unlimited amount of rides that week or month — oh yeah, that’s likely to happen.

The current timeline for self-driving cars to be out in the open road is anywhere from 5–20 years, depending on the celerity of the tech being developed. There are still many kinks to work through, but it looks promising and almost a guarantee.

Time to get to the numbers. Really, the only thing that matters. Because the proof is in the pudding; The only way we can tell whether Uber is here to stay is whether they are racking up the cash. Uber has no clear financial documents to state the exact amount it’s grossing, because it’s a private company, but:

  • It’s pretty clear that Uber grossed $10 billion in 2015, 80% of that goes to their drivers, 20% becomes their net revenue/earnings, which is $2 billion.
  • It’s well estimated that Uber is to make $20–26 billion in gross revenue for this year. Leading to a net revenue/earnings of $4–5 billion for 2016. A 100% boost from last year. — That’s huge.

Uber’s financial growth trajectory easily justifies it to be here for the long run, but the only thing that can halt Uber’s growth is competition. I’m talking about Lyft. The Pepsi in the tech world to Uber — at least in the U.S.

Let’s do a quick comparison:

Lyft has ways to go and so do all other Uber competitors. However, whoever enters the marketplace first, stays #1 for a long time as long as they continue to innovate. And that’s exactly what Uber is and has been doing.

Uber is here to stay and here to make an impact. Observe it’s movement throughout the next 10 years. I predict it will be one of the biggest companies in the world, up there with Facebook, Google, and Apple. It’s not just a ride-sharing app, it’s ambitions are much greater. It wouldn’t be an understatement to suggest Uber has the power to lead us into a completely driver-less future. And if that happens, remember this blog-post.

Until next,


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