Uber Rides Social Media Dominance to $17B Valuation

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June 10 (Bloomberg) -- Misiek Piskorski, professor at Harvard Business School, examines the $17 billion valuation for Uber, how they’ve grown their brand via social media, and the problems Twitter faces in monetizing users. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

How we profit from social media.

Joins us here on set.

How does effectively a taxi dispatching company transcend cars and putting people in touch with cars to become a social media phenomenon with a record valuation?

I like the comparison to hertz and avis, that is actually not the best comparison.

They make a lot of money out of the drivers every day.

They get $50 on the driver, which is a lot of money.

If there are 360 days, $18,000 they make on every taxi car driver in one lifetime.

That is a lot of money.

You think it to really big whether new quickly.

In theory, about 1.7 billion?

If you think about paying $17 billion for revenue, that is not bad at all.

Fair enough.

Those are the numbers.

What about the whole social media phenomenon?

Doing me to think about this as a lifestyle company?

>-- do we need to think about this is a lifestyle company?

They were fantastic at getting people to share with their friends.

My facebook feed was polluted with uber.

Curious choice of words, polluted.

Sometimes you have to pollute in order to win.

Zynga was polluting our fees with big house.

They never stop.

I think they were smart to prime the engine.

John burns, real estate consulting.

You recently took the car and had nothing but rave reviews for it.

I love uber ./i was recently in san francisco and knew for sure i would be able to catch a ride to the airport.

Two minutes later right in front.

Was in the technological process, what i love about the book as you talk about the need to finally make money.

You have been a critic of twitter.

I did not agree with your assessment of the twitter, but you are dead on.

They have to figure out how to make money.

How the -- how will make money if it is "polluted?

I think they have a different problem.

One reason they are having trouble getting revenues is the advertising they sell is very cheap.

The reason they sell a cheap as they do not target well.

The reason is most of us do not tweet.

Media people tweet but the average person in the street -- i agree with you strongly there is a wide body of twitter people are just following people but can you monetize them?

You just do not know enough about them in order to target them appropriately.

Do you have a phase they can monetize, even with the stock price going back to where it is?

I do not understand how they make money?

They are making money right now.

It is just not growing at the right speed.

The thing that would really help them is if they started targeting better.

Facebook was originally in trouble and they figured out the model and appropriate targeting, and that has pushed the stock through the roof.

L twitter is fully in the sphere.

Company like uber has integrated, too.

Isn't that really the key.

Interbreeding -- and are grading.

-- intergrating.

The reality is they took the experience of writing and a taxicab and democratized it and made a better.

I will go out on a limb to say at 17 billion and could be undervalued.

The reality is you could see a world 10 or 15 years from now where transportation in major cities does not look anything like it does today.

I did a speech in columbus, ohio, getting to the airport was like a foreign country.

I will tell you something, and it is a phenomenon in los angeles right now.

I have a 15-year-old son and gets trapped at a party and no one wants to pick him up.

Do you mind if i uber home?

You would never have told the 15-year-old to call a cab.

I think it is fantastic.

It is also word-of-mouth.

Cannot destroy them just as quickly?

You are saying a lot of regehr companies come into the space.

The reality is you have cab drivers.

They will go where they get paid the most money.

If someone could come in and start to break up the marketplace.

I feel like they have a great start.

You can charge more, but are we going to pay more?

There is uber x. you have choices.

I want to go to you with your real estate knowledge.

Do you think it is transferable.

I think we're missing the big point here.

They make it so easy to pay them using the phone.

I have just handed over $50 by pushing a couple of buttons on my phone and you're done with it.

The collection of money is so easy.

Telling my friends all about it.

I also think we have to think about international.

Many countries you go to southeast asia come you go to russia, parts of europe, it is not like that.

I would much rather get in uber in brazil than a taxi.

They need to be armor plated

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


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