“Uber Is Going to Zero and Their VC Backers Know It”
In a previous post, I wrote about the possible demise of Uber. In this essay on Medium.com, Matt Ward presents a similar view, comparing the deep “moat” AirBnB has against its competition with the shallow “puddle” that surrounds Uber.
The important lesson here is the idea I mentioned in my essay: User-built networks – like AirBnB – get more valuable (and less vulnerable to competition) as they grow because they provide customers with more of what they want: reach. But company-built networks like Uber have no advantage over upstarts because, as Ward points out, they are essentially in a marketplace of local commerce catering to customers that have no loyalty.