Uber is unlikely to survive far into the future.

I conclude then that Uber is not a tech company. It is simply a taxi company masquerading as a tech company, one that pays its contractors by the ride. For reasons outlined by Yves Smith in her New York magazine piece, Uber is unlikely to survive far into the future.

Right now about the nicest thing you can say about Uber is that it subsidizes the rides of it users by spending the money of investors and by exploiting its drivers who don’t seem to understand that they are not being paid enough to cover the wear and tear on their cars (which will have to be replaced sooner, of course, as a result of their extra duty ferrying Uber riders).

Uber riders are likely to continue to reap the benefits of cheap rides until Uber investors offload their shares on unsuspecting “greater fool” investors during the company’s planned initial public offering. However, it’s hard to see the company continuing to attract investment once the flaws of its business model are revealed under the scrutiny required by the Securities and Exchange Commission. And, once additional investment dries up, Uber riders will probably be forced in short order to look for rides elsewhere as the company disappears along with all the remaining capital of its investors.

https://goo.gl/7XFMJZ