wrote:
On Tue, 20 Sep 2016 13:10:55 +0100
Recliner wrote:
Perhaps they will, but not for the reasons you think.

http://www.cnbc.com/2016/06/08/ubers...e-on-shaky-fou
dation.html

Like the majority of the current crop of silicon valley start ups then. I'm
amazed the bubble has lasted this long. There must be a boatload of gullible
rich idiots out there bankrolling them all.

Yup, I can never understand the huge valuations put on high profile SV
startups. But sometimes they actually prove they can eventually make real
profits (eg, Facebook), and in many other cases they exit on a decent
valuation. So the early investors often make a very good multiple, which
pays for the others that don't make it.

With Uber, the investors aren't betting on the current business model, but
on an imagined future where people don't own their own cars, but rent
transport as they need it. Uber's plan is to dominate that market, and the
VCs are prepared to fund it to do so.