Social and Messaging apps were the fastest growing downloaded apps of any sector. Investors see it as completely irrelevant that the likes of Twitter, Facebook and YouTube do not make money as this will come later. With billions of conversations going on every day it fills that void of becoming indispensable in our everyday lives and payments has to ride on the coat tails and make money social to have a chance of faster mobile developments.
The proliferation of taxi applications has done the same thing. We look at the black and mini cab industry before the likes of Hailo, Uber and co it was cumbersome, long winded and needed reviving. It was the perfect market for applications to revolutionise and bring in to the 21st century. However, with Uber being valued at over $50bln, yet losing $19mln per month even taxi apps have crazy valuations like our previously mentioned social market.
I personally do not like the new taxi apps popping up, with all the negative press surrounding the drivers I much prefer to go with something I trust like a black cab in London, yellow in New York or white in Rome. This doesn’t mean they’re not a good thing though, quite contrary. Reality is the negative press these apps are receiving are things that have always happened they’re just in the press more because there’s an app behind it and these apps are making so much money.
I’m also not a huge fan at the fact these apps increase their prices when the local transport like trains go down to take advantage of the customers. This is something the non-app cab services don’t do.
It’s just not cricket Mr Uber.