One of the fastest parts of technology growing at a rapid clip is fintech.
Fintech has taken the world by storm threatening the traditional banks.
Companies such as Square (SQ) and PayPal (PYPL) are great bets to outlast these dinosaurs who have a laser-like focus on technology to move the digital dollars in an efficient and low-cost way.
Another section of the technology movement that has caught my eye morphing by the day is the online food delivery segment that has soaring operating margins aiding Uber on their quest to go public next year.
There have been whispers that Uber could garner a $120 billion valuation dwarfing Chinese tech giant Alibaba’s (BABA) IPO which was the biggest IPO to date at $25 billion.
Uber is following in Amazon’s footsteps executing the “blitzscaling” method to suppress competition.
This strategy involves scaling up as quick as possible and seizing market share before anyone can figure out what happened.
The growth explodes at such speed that investors pile in droves throwing inefficient capital at the business leading the company to make bold bets even though profit is nowhere to be seen.
Blitzscaling has fueled American and Chinese tech to the top of the global tech charts and the trade war is mainly about these two titans jousting for first and second place in a real-time blitzscale battle of epic proportion.
The audacious stabs at new businesses usually end up fizzling out, but the ones that do have the potential to blaze a trail to profitability.
One business that has Uber giving hope of one day returning capital to shareholders is Uber Eats – the online food delivery service.
2 thoughts on “A Lesson In Blitzscaling By Uber”
Other than I am not sure I agree it will take four months to go public, this article is SPOT ON!!! Well said.
This quote in the article could not be more incorrect:
“Uber will ditch human drivers for self-driving technology saving billions in labor costs.”
Uber, is a company in a HUGE tailspin, the words “self-driving cars” give investors the chills these days, especially coming from Uber. I expect their IPO will happen at least four months into 2019. There would be NO reason to go public sooner, they are plagued with lawsuits, loosing their best drivers (bread and butter), always launching projects before solving problems. This company is going to really shock many people once public. The Stock Market only wants to see the company profiting to consider it favorable… this is NOT the case with Uber who has NEVER turned a profit!