This article first appeared at The McAlvany Intelligence Advisor on Wednesday, June 4, 2014:
When software inventor and now venture capitalist Marc Andreessen looked at investing in Uber just after its launch, he said “Uber is the software [app that] eats taxis.” At the end of its fourth year, Uber is not only eating taxis, but providing thousands of new jobs for people every month. Last week Uber’s founder, Travis Kalanick said:
Just four years ago we set out to build a better option for people to move around cities: to make getting a ride safer, easier and affordable.
But Uber’s positive impact goes further. Hundreds of thousands of entrepreneurs are using the platform to build their own small business, resulting in a huge job growth engine….
The first rule to making a startup successful is to determine precisely and exactly who its customers are. With Uber, it’s both the customer needing a lift, and the driver providing it. The service is predicated on a simple premise: