Uber’s Path of Destruction | Dominik Mayer – Products, Asia, Productivity

Uber’s Path of Destruction  

Transportation consultant Huber Horan wrote my favorite article about Uber:

An examination of Uber’s economics suggests that it has no hope of ever earning sustainable urban car service profits in competitive markets. Its costs are simply much higher than the market is willing to pay, as its nine years of massive losses indicate. Uber not only lacks powerful competitive advantages, but it is actually less efficient than the competitors it has been driving out of business.

Horan then compares Uber’s business model to that of the taxi industry and concludes that “Uber has not increased taxi productivity or solved long-standing industry problems” but instead subsidizes fares so that it can offer prices consumers are willing to pay.

Go read the whole article. It’s fascinating.

Horan has a PDF version (and more articles about Uber) on his website.