Uber Makes You Rethink Taxi Services: Kedrosky

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

June 9 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky discusses Uber’s $17 billion valuation on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Invested in a lot of high-growth companies.

You have no problem with the valuation at all?

I do not really, other than i written -- wish i were an investor.

I ran into travis early on when he was first starting the company, and he told me it was a taxi service and i just laughed at him and, you're kidding.

It is an incredible story.

From ice and point, what is interesting and makes us less terrifying is this company is doing what these companies do.

They either take a large market and shrink it in a way that is -- destroys the incumbents and those of economics of the incumbent is is is, or, you find a whole bunch of people who would've loved to use a service that never did because it was not available.

It is really making you wreaths -- re-think the why and when you would use remote type services.

A lot of evil do not use them for all kinds of archaic reasons.

It is destroying income is by changing economics and opening up consumer sir les by having people say, wait a minute, i was willing to spend on this and someone is letting me.

It is ill a young market.

An old market they are breaking into and a new concept.

We are now starting to see some of the pushback.

We are seeing lawsuits filed by taxi associations.

We have video by a group of drivers who are now's doing over -- huber.

They want to put together a class action lawsuit your they say they're being price gouged by the business model.

Do you not think in a few years we will talk about big issues for the company?

I think the opposite.

These are the natural growing pains of a disruptive business.

It is no different than the arrival of the automobiles in the early century area you're going to have the exact same kind of growing pains, which will be horrible and nasty and painful, because many of the income it's are deeply connected , and it turns out he is fighting a political fight and did not know it.

That will be a difficult fight, but there is only one market where they have been forced to withdraw their services there it everywhere else, they have been able to continue operating.

This is the natural growing pains of a disruptive business.

Qwest is the fact they have a $17 billion valuation, does that change the outlook at all for the ipo?

It does.

In a good way.

As much as we saw with facebook and twitter, when you put yourself at these prices come you only need one option open, and that is an ipo.

You probably have to get out of a significant uptick of evaluation to actually provide investors with a reasonable return.

You do.

You price yourself in a corner.

Any hiccup in the business whatsoever is a train wreck.

Nevertheless, from what we see in the numbers doubling every six months, in terms of route traffic, these are the kinds of numbers that support that kind of growth.

You mentioned when you saw travis early on, you laughed at his idea.

Why?

There is a long history of wacky tax the ideas in the venture business.

Think back to the early days of companies like qualcomm.

A lot of people start there and then go somewhere else.

Equipment companies start in fact these and then goes and where else there's a lot of evil run head-on into a tickle and regulatory problems.

I thought, here we go again.

It turns out this one was the right time.

Thank you for joining us.

Managing partner at s j ventures.

Also, speaking about high valuations.

Releasing the entire second season of "orange is the new black lows of which had a huge year.

What is the new buzz?

And, the largest sporting event

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change