Opinion

Why Uber will never make money!
Sree Vijaykumar
Sree Vijaykumar
From the Editor's Desk
The only way sharing economy companies like Uber can insert themselves between the customer and the asset owner, and truly benefit all parties, is by increasing the frequency of customer usage of the asset or by increasing the aggregate size of the customer base, argues Seyi Fabode in this blog post. The constraint is that there is only so much money to be shared between all parties when you insert your app (and the back-office that supports that app) between a consumer and the product/service they want to consume. The constraint is that the broker model, even with new technology, is not value additive. At some point someone has to be purged from the system, and it won't be the asset owner, producing or delivering the service, or the consumer, who pays for the service.

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