Overvalued: Uber? Worth $40 BEEELLION? Hey, actually, hold on ...

[swatkats]

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The latest fundraising for Uber seems to peg the value just north of $40 billion. Which is, when you think about it, quite a hefty sum for what is, after all, just a registry of hireable people with cars.
Sure, we're talking 50 countries now, 250 cities, but it's still about taxi rides. And it's a competitive market. There're plenty of people following in much the same technological footsteps. Lyft, Sidecar, Le Cab, Hailo ... the world's littered with people doing much the same thing.

However, there is another way we can look at this and that's to ask whether Uber and Google are competing with each other or setting the stage for cooperating with each other (yes, I'm aware that the one has invested in the other). Think of it this way for a moment. Cars, self-driving cars, meat driven cars, taxis, these are all forms of urban (and we are really talking about urban here) transport.

So, imagine what could happen if Google's project really does bear fruit and also that Uber continues to gain market share around the world. Uber's largest cost will be that $50k a year that they say drivers are now making part time. Scale that up to the 24/7 that Google's cars would be able to work and that's $200k a year and more in costs. Costs that could be stripped out by dumping the meatsacks and using the Google technology. And of course Google's going to be standing there with a workable technology and looking for someone with the network of customers and the infrastructure to ally demand for rides with supply.

Does that make Uber worth $40 billion? All a bit speculative really but it is at least conceivable that it does.

And just think, if it does happen, maybe Delhi will let Uber reopen there. After all, the robots aren't going to require background checks nor rape anyone, are they?

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