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Uber’s Kalanick, Shareholder Settle Feud, Clearing Way for SoftBank Deal

Uber’s Kalanick, Shareholder Settle Feud, Clearing Way for SoftBank Deal

Read more on The Wall Street Journal

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  • Now the heat's on Lyft to raise more funding so it can continue to offer lower prices, incentives to drivers, etc. (i.e. the same spiraling costs that are causing both Uber and Lyft to lose so much money in the first place).

  • This is nuts. Alright, clinically, it doesn't meet the definition of insanity, but it does seem grossly irresponsible of Softbank and Mr. Masa to keep pouring money into a company with no viable business model and no prospect of ever generating a profit. Uber cannot provide taxi services cheaply enough

    This is nuts. Alright, clinically, it doesn't meet the definition of insanity, but it does seem grossly irresponsible of Softbank and Mr. Masa to keep pouring money into a company with no viable business model and no prospect of ever generating a profit. Uber cannot provide taxi services cheaply enough to compete with existing players and still make money. It's tried changing the public laws (New York) and ignoring the public laws (London and Paris) that govern the business of rides for hire. It's tried defying the laws of commerce (pretty much everywhere) the laws of decency (Let's pass over the details of the proximate cause for Mr. Kalanick's leaving the CEO's chair) and the laws of fair play, consistently cutting the minimums promised to drivers and treating full-time employees as contractors to whom it owes nothing. And still the company has failed to make a profit. With ride-hailing software now available practically off-the-shelf, what are the barriers to entry for competitors?

  • Market forces are not so easy to predict. Especially when there is other players like Lyft who would take the opportunity to take market share from Uber when there is changes to the fare. Unless Uber lowers their share of revenue, drivers will not get higher salaries. Not going to be an easy decision.