Uber Looking Beyond Limo, Taxi Markets

Posted on September 22, 2015 by - Also by this author

Two magazine articles about Uber's long-term plans should give the limousine industry pause about whether the transportation network company will decimate it, as many operators fear. The TNC appears to have ambitions beyond ground transportation, and could be shifting its focus altogether. 

In the October issue of Fast Company magazine, a cover profile of Uber CEO Travis Kalanick states how the Uber founder is pursuing "a series of audacious initiatives, including investments in Uber's core offering that could eventually move it even further away from its roots in limousines and luxury."

My takeaway from this article is that Uber's $51 billion valuation now is so high relative to its lack of profits that it must spend time and energy going into more lucrative markets and services. Luxury limousine rides may not sustain it long-term, meaning it could leave that segment. . . to actual limousine companies connected via national and regional mobile apps. 

A Sept. 21 Vanity Fair article underscores that point: "Uber isn’t actually a high-tech taxi company; it just happens to be one right now. During an expansive interview with Bloomberg’s Emily Chang, noted V.C. and Uber investor Chris Sacca — a.k.a “The Unabomber” — explained that he expects the company to eventually plow into all manner of other sectors. Uber is already experimenting in food delivery, but some speculate that it may one day pose as a credible threat to parcel services such as FedEx and UPS."

There's more revenue-by-volume to be made on food and packaging/parcel deliveries, as opposed to non-taxi-style luxury limousine rides (Uber Black). While we can't predict how volatile technology sector start-ups and companies play themselves out, wouldn't it be interesting if "luxury limousine" will end up as a discarded phase for Uber?

View comments or post a comment on this story. (0 Comments)

More LCT Blog Blog Posts

March 8, 2017

Immigration Issues Can Hit Limo Operators

Illegal or not, immigrants in one California region spend hard-earned money on renting stretch limousines.

March 1, 2017

Did The Dent Fairy Come To Visit You?

Unlike the tooth fairy and baby teeth, the dent fairy never runs out of vehicles.

February 15, 2017

My Unofficial International LCT Show Agenda

The suite parties, charity fundraisers, and off-the-grid get togethers round out a complete global industry trade show.

February 14, 2017

How To Practice Common Sense Customer Service

It's one of the most important and difficult qualities to hire for, since it emerges in unexpected situations on the job.

February 1, 2017

3 Big Fouls From My First Uber Rides

Operators don't have much to worry about if TNC drivers keep acting like this.

See More

Facebook Comments ()

Comments (0)

Post a Comment



See More

LCT Store

LCT Magazine - June/Fact Book 2017 $12.95 * Facts & Stats * Directors & Guides *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close