Link: Why Uber’s Business Model May Not Be Viable

The sharing economy, fueled by the internet’s capacity to match small buyers and sellers, looks like a revolutionary business model. But for this model to be sustained, there must be a reliable source of long-term profits. Ride-hailing is perhaps the application of the sharing economy that is currently most developed, so its success or failure will teach us a great deal about the model’s viability in the global business landscape.

At some point, you have to make a profit.

It also ads a cynical angle to “disruption” that’s often omitted: you have to burn a lot of money, maybe even 5 or 10 year’s worth. Older companies often can’t do this without a huge financial and share-holder toll.

Source: Why Uber’s Business Model May Not Be Viable