Uber Hints at Detour With Volvo Deal

For all its technical complexity, Uber is a relatively easy-to-understand business. The company doesn't own physical assets or employ drivers. Instead, its software connects people who want rides with people willing to drive them, and Uber takes a cut of the fares.

The mechanics and financials of this type of middleman business -- or a "two-sided marketplace," if you want to make small talk at Silicon Valley holiday parties -- is familiar thanks to eBay, Priceline, Apple's mobile app store and many other companies with similar foundations. But now Uber Technologies Inc. appears to be wading into owning physical assets, which calls into question what its ultimate business model will be.