ridesharingThe Ride Sharing Business:Is a Bar Mitzvah Moment Approaching?

Article Summary

Who wrote this great arti­cle? Aswath Damodaran, Pro­fes­sor of Finance at the Stern School of Busi­ness at New York Uni­ver­si­ty, where he teach­es cor­po­rate finance and equi­ty val­u­a­tion


The Sit­u­a­tion:



Aswath wrote a very com­pre­hen­sive, ana­lyt­i­cal, and prob­a­bly bril­liant arti­cle about Ride Shar­ing in Seek­ing Alpha in August.
He is basi­cal­ly say­ing that dis­rup­tive Ride Shar­ing has got to make mon­ey


Sum­ma­ry or Sig­nif­i­cance of What He said:


• Dis­rup­tion is easy but mak­ing mon­ey off dis­rup­tion is dif­fi­cult, and ride shar­ing com­pa­nies would be exhib­it 1 to back up the propo­si­tion.

• While the ride shar­ing option is here to stay and will con­tin­ue to grow, ride shar­ing com­pa­nies still have not fig­ured out a way to con­vert ride shar­ing rev­enues in prof­its.

• I have argued every young growth com­pa­ny has a bar mitz­vah moment, a time in its his­to­ry when mar­kets shift atten­tion away from sur­face mea­sures of growth to more oper­at­ing sub­stance (evi­dence that users are being mon­e­tized).

• This may be pre­ma­ture but I have sense that the bar mitz­vah moment has arrived or will be arriv­ing soon for ride shar­ing com­pa­nies.


This arti­cle is must read­ing for all auto­mo­tive star­tups so go get it

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