Lyft decided to suspend its rideshare service in California after being ordered to account for drivers as employees. Uber may be next. It is unlikely that Uber or Lyft could ever operate profitably were they both forced to account for all drivers as employees. In equity and fixed income analysis we have the "consolidation" principle … Continue reading Lyft Tapped Out In California. Uber May Be Next.
Companies don't establish themselves in new markets overnight. All good things take time and effort. Market awareness typically evolves in three main stages as companies evolve from "Challengers" to "Established" players. Stage 1: Stage 1 companies carry high cost of customer acquisition, long sales cycles and low sales volume as indicated in figures 1 and … Continue reading 3 Stages of Market Awareness
If you read these pages or listen to our TEK2day Podcast you know we avoid companies with little in the way of defensible intellectual property ("IP") or a sustainable competitive advantage. We have consistently articulated this sentiment about Uber for the past several years. Further, Uber has less operating leverage than one may conclude after … Continue reading Uber: Little IP & Less Profitability than Meets the Eye