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     Saarang Kurra Bewarse Username: Saarang Post Number: 1874 Registered: 04-2015 Posted From: 76.184.128.33 Rating: N/A |
thought a lot about it...but dont have a good feel about the long term prospects Bull case Companies with so many users have generally went on to become very very successful over time (the FAANG companies) Dara is good at running companies, like him much better than the founder Bear case None of the FAANGs had so much operating losses even in their very early days I think it will boil down to this...their current pricing is not sustainable...they will have to increase prices and not lose riders. In most markets they only have 1 direct competitor...so it could become a duopoly. But the challenge is if the duos raise prices, demand may go down as peope opt for other alternatives like driving themselves. Their long term future would depend on a good % of people not owning cars in future and being happy to pay more than the current fares (2x?) for their service. Autonomous driving should help them. Very eager to see how this will play into the future. |