[southerndrift]

Uber is preparing for a future with self-driving cars. If they are the network to rent those cares, they will make back everything and more. The manufacturers and even the self-driving software won't matter. All that matters is being the app that summons the rides.

The network is not as defensible as facebook, but all the other players would have to stick together to dethrone them.

[vkou]

What stops me from getting a billion dollars in investor money, developing an Uber-clone app, buying a bunch of self-driving cars, and renting them out as taxis in the top five metro areas in North America?

The network is not 'not quite as defensible as Facebook'. The network is not defensible at all.

The Uber app adds no unique value to the user. The Uber logo on the cars adds no unique value to the user. If the cars are off-the-shelf self-driving vehicles, then there is no sane reason why anyone would care whether or not they are riding in an Uber, or a Vkouber.

It's not like all the hooballaa about licensed and vetted and non-asshole higher-quality drivers is at all relevant in a self-driving car world. The only thing you'll be competing on is price.

You know which industry operates this way? The airline industry. And do you know what's the easiest way to have a small fortune? Start with a much larger fortune and invest it into an airline.

[southerndrift]

Nothing is stopping you. But will you retain your market if you are not the biggest network? You need deep enough pockets to get 50% of the market or Uber will get its share back once you try to be profitable since they can leverage their scale.