Operating at the Intersection of Technology and the Capital Markets
Tag: Uber
There is a difference between truly Autonomous Vehicles - those qualified to operate without a driver - and ancillary technologies such as driver assist. Below we provide detail about where various Auto OEMs are in their Autonomous evolution as measured by Autonomous Vehicle permits held in the state of California. (For those who receive our … Continue reading Autonomous Vehicle Permits in CA
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.
The Venture Capital model is broken. VC interests are not aligned with the best interests of their limited partners nor of their portfolio companies. VC's push portfolio companies too fast in a short-term greedy effort to maximize valuations at the expense of operational rigor: VC's push portfolio companies to generate warp speed revenue growth at … Continue reading Venture Capital Is Broken
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
Over the past several years as I've read articles about Uber, WeWork and a number of technology startups, my takeaway is that many of these companies lack focus. They lack a focused mission. They lack strategic and operational focus. I understand the argument that institutional investors want growth in the absence of yield, but too … Continue reading Growth at All Costs Leads to A Lack of Focus
We recently published an article entitled "The Now Economy and Workplace Implications". Sticking with this theme and on the heels of Walmart's latest salvo in the "Walmart vs. Amazon Food Delivery War", we have published a list of food delivery services. We also share our thoughts as to how this game may play out - … Continue reading Convenience as a Service (“CaaS”)
Rideshare as a long-term investment? Right up there with owning an airline. Heck, even if the rideshare companies were operating at scale - running on autonomous vehicle fleets - would you really want to own that business? Depreciating assets, multiple competitors (it will be more than Lyft and Uber), and thin profit margins (we are … Continue reading Rideshare as an Investment? Don’t Be Spun by the VCs
SaaS Companies and Subscription Revenue Models Every company can learn from SaaS (“Software-as-a-Service”), companies. My first exposure to SaaS companies was the first self-proclaimed "SaaS" company – Salesforce.com. This was early in my banking career around the time of Salesforce’s 2004 IPO. Today, Salesforce is a $110 Billion-plus market cap behemoth. Every company - regardless … Continue reading Every Company Should Consider Adopting A Subscription Revenue Model
Cadillac's "BookbyCadillac" premium automobile subscription service (we refer to as AaaS), sits comfortably between the traditional car ownership model and the pure rideshare model (Uber, Lyft, Waymo). Priced at $1,500/month (plus $500 initiation fee), we don't believe that Cadillac's bundled subscription service is a good value - flexibility and convenience come at a price. Listen … Continue reading Automobiles as a Service (AaaS); Uber Completes Tender Offer
A bit of Simulation Theory, 1984, Minority Report and The Matrix. While autonomous vehicle technology is real - don't believe the hype: Ep. 88: Autonomous Vehicles - Real Technology with A Dash of Hype:
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