So UBER is valued at $70 billion, with operations in 425 cities. And now they are testing self driving Uber cars in Pittsburg. Despite the huge success abd growth if Uber, the cab app hailing business only accounts for 4% of kilometers travelled by cars currently. That explains Uber’s appetite for rapid expansion and market aggression.
PERSONAL TRANSPORT MARKET IS WORTH $10 TRILLION ANNUALLY
The personal transport market is work $10 trillion dollars annually vs The taxi market at $100 billion annually …. Experts say self driving cars will eliminate 80-90% of cars in North American cities and eliminate the need for car ownership all together.
WILL UBER KILL PERSONAL CAR OWNERSHIP
It seems uber will be the end of Car companies and taxi industry put together if schemes like Helsinki scheme plays out. The City of Helsinki has conceived and app that would drive a multi-transport app hailing device that will also be able to operate on demand public busses.
Add to the fact that the days of the internal combustion engine are also numbered by the reemergence of the electric car and their sheer speed of innovation companies like Tesla and Google are bringing to market with regards with leaps in self driving cars.
WILL UBER STILL DOMINATE?
Why uber is primed to dominate that’s simple …. They “Uber” understand complexity of servicing millions in decentralized but personalized ecosystems… The car companies make things and parts that go vrooom. It’s an unfair comparison actually. Car makers of the future like Tesla and Google understand that a car is a device and will probably or are collaborating with Uber already.
The future is not things it’s systems (ecosystems) and the complexity of servicing many people in a customizable way that’s driven by personal preference and timing of service delivery.
The future is here … it’s just unevenly distributed… People are being driven by self driving electric cars. The issue is always make that future available at a rate that’s profitable for someone and some corporation.
I think Peter Thiel was talking about companies like Uber when he said “Great companies are a conspiracy to change the world”.