Why Uber just might be worth it at $18 billion’:
It’s all anybody talks about, other than Airbnb. This exalted status used to be occupied by music. How did this happen?
Interestingly, Travis Kalanick, Uber’s majordomo, used to be in the file-trading business, with a company called Scour, you know how that turned out, the record companies killed file-trading dead and it took the better part of a decade for streaming services to put a dent in piracy, and now the artists who wouldn’t say boo about Napster are all up in arms about Spotify and if you think this is a good thing, you probably hate change and wish that you could have your old Doc Martens back, you know, the ones with the eyelets ripped out.
Uber is kind of like the Beatles. It came from left field, completely unexpected, there were early adopters, and then critical mass, yes, Uber was around for years before it was fully embraced.
And then people couldn’t stop talking about it, now even oldsters.
Look at the price of concert tickets, look at celebrity endorsements/sponsorships, if you get all warm and tingly about musical artists either they have little traction or you’ve barely hit puberty. The rest of the public…shrugs.
Uber utilized new technology to upend the existing taxi system. Yup, Uber used a smartphone app. Whereas, as stated above, artists HATE Spotify, which runs cleanly on an app. Because artists are so stupid they can’t understand the concept of critical mass. That you build the infrastructure first, and then money comes raining down. They’ve got cable and wireless subscriptions, but to explain the financial investment is too much for them to understand, either because they’re too old and don’t believe in math, or they’re too young and don’t know it.
But just like Pro Tools, Uber understood the costs of production have gone down. Believe me, I’ll get an e-mail from someone lamenting the death of studios, what next, string sections? Hell, something is lost in every venture into the future, but that does not mean the mass will stay locked in the past. Actually, it’s always the mass which drives adoption of these new services, people catch on and can’t stop talking about them. Yes, the customer is driving adoption.
And, interestingly, people love paying more on Uber for convenience. We charge people for VIP at festivals, but music (like sports) is all about INCONVENIENCE! Lines to get in, lines to buy food, which is oftentimes inadequate. And it’s always someone else’s problem in music, it’s Ticketmaster’s or the venue’s, no one takes responsibility.
And you wonder why everybody goes into tech, why everybody talks about tech.
Because in tech they’re pushing the envelope, in tech they’re breaking rules, in tech they’re making MONEY!