There is one key thing to know about Uber. This is it.

Uber is a global logistics company based on sophisticated computer technology. It takes a modern software approach to delivering services. That’s the key thing to know about Uber.

Uber is not:

  • an app. The app is just your entry into the services that Uber provides. Behind that is the sophisticated computer technology that really makes it work.
  • a taxi service. Uber is a logistics company. “Logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations” (Wikipedia). That’s what Uber is. If there is something that needs to get from A to B, Uber will do that. It could be people, it could be food,  or it could be goods. Regardless, Uber is capable of doing that. If that is what your business does too, you will be competing with Uber.
  • local. Uber is not interested in just your city. Uber will disrupt your city, but it is not focused just on where you live. It is a global company looking to provide services globally, one city and territory at a time.

Finally, Uber is delivering logistic services, but it is delivering them the way other companies deliver software. That means it is going to take VC money and rapidly deploy service after service, upgrade after upgrade, to do what it needs to do to be successful. It doesn’t need to be profitable. It does need market share. If market share comes at the expense of your logistic services, so be it.

Lots of people talk about Uber. If they are not thinking this way, they are missing the bigger picture.

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