A corporate-strategy view & shareholders opinion of Uber; the ride-hailing behemoth that’s getting ready to enter the mid-point of a 15-round heavyweight bout.
A. We were IPO-buyers. We wanted to be as the move was intended to be a statement of our approach & commitment.
B. We want build a large equity stake in the company over this decade. And show that we have the environment to bring together and manage capital to support that.
C. We want it to be large; because of the benefits that come with being a part of a consortium of people + opinion + capital. We can go after a seat at the table of collective opinion around Uber. It gives us leverage and adds additional capital protection.
D. Generally, we buy assets because we see it as funding the company on its immediate endeavors; it’s goals for the next decade. We have a vested interest in its vision and give them the capital it needs to go exert that vision into existence. This is true across most shareholders, if you think about it.
E. We have an opinion on how Uber should run it’s business and watch from a distance; adjust our approach based on how the facts present themselves.
Now, here’s the basic numbers around Uber. Actually, it doesn’t matter. All of that is actually noise when you take a 10-year view.
The rhetoric from Uber has largely been missing one-element. And in our view, it’s the only thing that matters. There is also a significant lack of attention paid-to by shareholders and analysts, to the fact that Uber’s biggest and really, only battle is against car-ownership itself. And that their collective goal, is simply, to push the idea of car-ownership off a cliff.
That’s it. That’s all they have to do. That’s all they should talk about. Forget riders, rider-ships. You’ve already won that battle. That snowball is big enough to roll. Now you have to manifest into existence the truly, one-purpose of your existence. The average car-ownership cost is about $500 in America. That’s a combination of monthly loan payments + insurance. That’s the number to beat for Uber. Give a user the ability to take as many rides as he possibly could want, and offer it to him at a collective-cost less than $500 and you’re going to start tipping the scale.
We’re in the midst of an explosion of subscription-based services. For the yet uninitiated, its because its an extremely lucrative type-of business to be involved in. Getting $9.99 getting deposited in your bank account every month, without lifting a finger, is a special kind of gift. Major Corporations and yet-to-be established businesses world-wide are actively looking into shifting or identifying business models that will bring-in this strength of recurring revenue to their balance sheet. And Uber is at the cusp of manufacturing the mother-of-all-subscription services. That’s the type of powerful balance-sheet exposure and capital leverage it’s going to take for Uber to mount a charge on owning the next century of global transportation.
All this said, at some point over this decade Uber will enter the championship-rounds. Uber’s direction and opinions are categorically opposed to another company that’s being built in California. Tesla and Elon Musk lay directly ahead. They are building the tech that Uber needs; but they promote a culture that’s largely falling out of favor already. We’ll see how some of this will shake out.
Relevant links: Click below to view
Communicating-the-theory-of–declining-car-ownership; Uber-as-an-accelerator-of-declining-car-ownership; Roll-Technologies-Inc-as-a-last-mile-accelerator-of-not-needing-cars; Building-a-business-case-against-car-ownership; car-drivers-are-human-and-dangerous; what-will-Roll-do-during-winters; communicating-the-ability-to-divest-cars; cars-turning-into-premium-products.