News Sidecar: ‘We failed because Uber is willing to win at any cost’

Discussion in 'The Howard Stern Show' started by DDragon, Jan 20, 2016.

  1. DDragon

    DDragon VIP Extreme Gold

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    Three weeks after Sidecar announced plans to shutter its on-demand delivery service, cofounder and CEO Sunil Paul has come forward with an explanation.

    In a post on Sidecar’s site, Paul blamed his company’s failure on Uber and its “win at any cost” mentality, fueled by the $8.61 billion in capital it has raised to date.

    “We were unable to compete against Uber, a company that raised more capital than any other in history and is infamous for its anti-competitive behavior,” he said.

    Although it ended up competing with the likes of Postmates, Sidecar started out as a pioneer in the ridesharing space and to this day holds a patent around making transportation routes more efficient. But while it did well in the beginning, Sidecar wasn’t able to pick up substantial traction to compete against not only Uber, but also Lyft.

    Over time, it was apparent that the ridesharing space only had room for two well-funded companies — at least in the U.S. That’s not to say that Sidecar didn’t try to compete as it continued to emphasize that out of the three startups, it was the only one that didn’t have surge pricing. Paul’s company first introduced shared ETAs, driver directions, shared rides, and other features that its competitors picked up on.

    Eventually, Sidecar decided to pivot towards on-demand deliveries, but found itself facing tough competition in that space too, including from not only Postmates, but Google, Amazon, and eventually Uber.

    “The legacy of Sidecar is that we out-innovated Uber, but still failed to win the market,” Paul admitted.

    Ultimately, Paul’s team sold the company’s technology and assets to General Motors for an undisclosed price. In doing so, Sidecar sought to find a place where its “spirit of innovation” could continue while also helping employees find new jobs.

    This isn’t the first time that Uber has muscled a competitor out of the market. In 2014, the company’s investment strength caused Hailo to ditch its U.S. expansion plans. At the time, Hailo chairman Ron Zeghibe said its efforts to raise funding were hampered by a clause in Uber’s investment terms: “You can invest in us but only if you don’t invest in our rivals.”

    And let’s not forget that there’s no love lost between Uber and Lyft. The latter is apparently fortifying its defenses by establishing an alliance with GrabTaxi, Ola, and Didi Kuaidi. Now, with GM’s $500 million investment, Lyft may hold off any pressure that Uber brings to bear.

    http://venturebeat.com/2016/01/20/sidecar-we-failed-because-uber-is-willing-to-win-at-any-cost/
     
  2. Mark Mayonnaise

    Mark Mayonnaise You look like a tree! VIP

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  3. Mlaw

    Mlaw Quite Contrarian Gold

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    I'm sure he made a pretty penny selling to GM, I'm not going to cry for the guy
     
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  4. DDragon

    DDragon VIP Extreme Gold

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    [​IMG]

    :pissed::pissed::pissed:
     
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  5. goldtopper

    goldtopper Well Known Heterosexual Gold

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    "The legacy of Sidecar is that we out-innovated Uber.. But failed to win the market" Paul admitted.

    Wtf? You did not and you lose.
     
  6. El Guapo

    El Guapo Well-Known Member

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    Exactly. 'Anti competitive' because you didn't succeed?

    This cat must has been on the front end of scoreless soccer games so kids didn't get their feelings hurt
     
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  7. Tipsey Russell

    Tipsey Russell VIP Extreme Gold

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    I own a car
    sometimes it's a pain

    but mostly it's awesome
     
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  8. synch22

    synch22 Well-Known Member

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    your uber driver makes no money unless they drive their car tons of miles, basically trading their depreciation for cash now.
    I drive both maybe 10 hours a week. Unless its surging , really not that great. I do it to kill time more than the extra bucks...but don't get me wrong I love a Fri and Sat night with surges.

    other than that its kind of a joke. I am in a major city I don't want to know what's its like for guys in other areas.
    and oh , better hope this uberization does not hit the general economy.

    "hey Joey, finance and accounting is kind of slow right now can you come back at quarter end and work your ass off? No? Ok we will send out a notice and scoop up someone else via an app"
     
  9. wigtropolis

    wigtropolis Well-Known Member

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    Get in or get our fuckstick
     
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  10. Beth143nacho

    Beth143nacho Well-Known Member VIP

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    Pretty sure sidecar failed because Sunil Paul www a shitty businessman. His whining in this article pretty much confirms that.

    Nice of him to take the gm money and tell his people to fuck off.
     
  11. Javaforgotme

    Javaforgotme Well-Known Member Banned User

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    I think last last part is already being done by India and Russia

    Do you think Uber will grow too big and be forced to a more traditional model? It sounds like you know from experience - it doesn't sound like the drivers make much money - I keep waiting for some big liability risk (Uber driver killing passengers, etc) to materialize and destroy the uber model.

    I don't think they can grow much bigger in the US w/o encountering traditional labor, insurance, overhead issues. Bringing them back to earth.
     
  12. bluedevil30

    bluedevil30 Well-Known Member

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    Uber last rounds of financing have been sucker rounds to high net worth individuals. Its unclear if they are even making money yet. Increasing taxi supply drives prices down across the board.
     
  13. NyMarkNy

    NyMarkNy VIP Extreme Gold

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    So being smart and driven is a bad thing? Only in the new incarnation of liberal America.
     
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  14. wigtropolis

    wigtropolis Well-Known Member

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    Ubermypenisman
     
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