Uber is a case study in “rocket ship” growth that I discussed in the last post. The question on everyone’s mind is; how did they do it? Here a few things you probably didn’t know that will help you become a better investor or founder!
1. From zero to $47B in 2018 and $56B in gross revenue in 10 years!
2. Their net revenue is 25% of gross revenue, what they take from drivers. So $11B and $14B in 2018 and 2019 net revenue.
3. They keep evolving faster and better than other startups, even at their size. They have developed UberBlack, UberPool,UberEats. They are frantically trying NOT to be disrupted.
4. They do operations better than 99.9% of startups. They put teams on the ground that hustle and took ownership of the business, and who were empowered to make their own decisions and try new things.
5. They shared best practices from each local market to their global operators to shorten the learn and growth curve.
6. They own a piece of all the leaders in their industry in other markets where they aren’t the leader themselves.
7. Private market valuation was $85B but when they go public the bankers are thinking $100-120B valuation. Which would make them larger than Ford, GM and Chrysler COMBINED, all without owning cars.
That’s how you disrupt the market and send a rocket into outer space!