The practice of hiring vehicles for transportation goes back to the 17th century.
Dateline London 1635, the Hackney Carriage Act was the first legislation passed controlling horse-drawn carriages for hire in England.
Dateline Paris 1640, Nicolas Sauvage offers horse-drawn carriages and drivers for hire.
The taximeter was invented by the German inventor, Wilhelm Bruhn in 1891. The taximeter measured the distance or time a vehicle traveled and allowed an accurate fare to be determined.
It is widely believed Gottlieb Daimler built the world's first dedicated taxi in 1897 called the Daimler Victoria. The vehicle came equipped with the newly invented taximeter and was delivered to Friedrich Greiner, a Stuttgart entrepreneur who started the world's first motorized taxi company.
By the end of the 19th century, automobiles began to appear on city streets throughout America. It was not long before a number of these cars were hiring themselves out in competition with horse-drawn carriages.
Soon horsepower was removed from horses, and natural resources would be the horsepower to move vehicles. Gas-powered taxis came first to Germany, Paris, and London, and then to New York in the year 1907.
The Travis Kalanick of his day was Harry Allen.
Allen created The New York Taxicab Company and imported 600 gas-powered taxis from France in 1907, and he borrowed the word "taxicab" from London.
To ensure his vehicles were full and quickly recognized, he painted his taxis yellow.
Flash forward over 100 years later, and we now have Uber.
A company which owns no vehicles.
A company which employs no drivers.
A company with a valuation of $120 billion.
This valuation makes the company one of the most valuable transportation companies operating anywhere on the planet.
Consider Uber's valuation is more than General Motors, Ford Motor Company, and Fiat Chrysler Automobiles combined.
At a $120 billion, Uber's is worth more than double the average of companies in the NASDAQ 100 Index on a price-to-2018 sales basis. It gives the ride-hailing company a multiple of about 12 times, compared with an average of 4.8 times for the index.
Big numbers for sure, but why?
Three reasons:
1. Global scale
2. Reduced friction
3. Reduced anxiety
Uber's global scale is stupendous.
Where Harry Allen was limited to the five boroughs of New York City, current Uber CEO Dara Khosrowshahi can provide transportation in 65 countries and over 600 cities worldwide, plus the company completes 15 million trips each day.
Uber has access to 3 million drivers who can move passengers from airports to city centers, from nightclubs to after-hour parties.
Also, as a consumer of the service, your experience and expectations can be harmonized regardless if you are in Indianapolis, London, or São Paulo.
Uber has dramatically reduced friction.
The premier etiquette organization, The Emily Post Institute, yes there is such an institute, recommends tipping your taxi driver between 15 and 20 percent of the total trip fare. Plus If you've traveled with luggage and your driver has helped you, it's proper etiquette to tip more. Beautiful, no set guidelines.
Also, you'll need to find out ahead of time if your cabbie accepts a credit card. If you don't make sure and you don't have enough cash, you'll have to leave your luggage and gear as collateral as you stumble around Singapore's Changi Airport at o-dark-thirty to find an ATM.
Hop in Uber anywhere, anytime, and you'll never need cash. You'll never need to fumble with credit cards and swiping. You can tip as suggested and even add commentary on the state of the car's interior and the cabbie's choice of music.
Uber has significantly reduced anxiety.
Most places allow a taxi to be hailed or flagged on the side of the street as it is approaching. Another option is a taxi stand. Finally calling a central dispatch office for a taxi ride is an option.
So ringing up a ride isn't new, even if it is via an app. Get an Uber is the same as call a taxi.
Uber didn't create new technology; it deployed consumer behavior tactics. Before 2009 users of taxis had no knowledge when a cab would appear on their street, when a taxi would arrive at your door, or who is behind the wheel.
Now with a comfort inducing screen and the anxiety-reducing Pac-Man-like vehicle avatar displaying your ride shuffling across a map to pick you up, you now have knowledge.
The knowledge that your ride will appear, when it will arrive, and who is behind the rule - plus the most anxiety reducing tactic - you can inform family and friends where you are in your journey and when they can expect you - further reducing their stress.
Lessons here for entrepreneurs and thought leaders:
Few ideas are new. Uber is executing the 17th century idea of taxis and the 19th century idea of telephones.
What is new are the tactics Uber is employing to execute these old ideas.
Having a service or product that allows you to be global from day one.
Having a service or product that allows you to reduce end-users burdens.
Having a service or product that allows you to reduce end-users uncertainties.
-Marc
Marc A. Ross specializes in thought leader communications and global public policy for public affairs professionals working at the intersection of globalization, disruption, and politics.
Caracal Insider Daily | January 12, 2018
Shithole, Trade Surplus, Shaquille O'Neal, Facebook, NBA, GM
Caracal Insider Daily
January 12, 2018
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Caracal Insider = Global Business News at the Intersection of Politics + Policy + Profits
Subscribe here: https://goo.gl/bSQKwA
TOP FIVE
✔️ Shithole countries
✔️ Trump calls off planned trip to London
✔️ China reports biggest-ever annual trade surplus with US
✔️ Facebook overhauls news feed
✔️ NBA shoots for global growth with London showcase
ROSS RANT
Trump to Davos - with a stop in London? https://goo.gl/9AQjJr
"With POTUS off to Davos, I am confident the White House is pressing Number 10 to allow Trump to pop into London Town to open the new US Embassy and have a proper meeting with Prime Minister Theresa May.
He needs this visit and this meeting, like a lot."
This Ross Rant did not age well at all.
GEOECONOMICS
WSJ: Trump calls off planned trip to London
Donald Trump cancels London visit amid protest fears: Guardian reports, Trump t will not open new US embassy next month, with the secretary of state Rex Tillerson likely to take his place.
Bloomberg: Trump scraps UK trip, citing Obama embassy deal begun by Bush
Hilarious.
The Crown always wins.
Farage's call for second Brexit vote greeted with glee by remainers: Guardian reports, the former UKIP leader shocked his colleagues on Thursday by suggesting another Brexit vote should be held, arguing it would lead to a more decisive victory for the leave campaign and silence remain supporters for a generation.
Army rips out Chinese-made security cameras at US base: WSJ reports, the U.S. Army said it removed Chinese-made surveillance cameras from a domestic military base. A congressional panel will hold a hearing into whether businesses face cybersecurity risks from using the equipment.
China reports biggest-ever annual trade surplus with the US: WSJ reports, China reported its largest-ever annual trade surplus with the U.S. last year while its overall imbalance with the world shrank, potentially strengthening the Trump administration’s case for tougher penalties and other trade actions against Beijing.
The metric good for lazy politicians but useless otherwise: A trade deficit or a trade surplus is a useless metric to gauge the state of a nation's economy, but it is a wonderful tool for pandering campaign rhetoric.
You need to remember, China at its core is an assembly economy. Thus China's economy is a prime example of the obvious statement that the whole is great than the sum of its parts. Most Chinese companies import components and materials from around the world and then assemble them into useful products for sale globally.
No R&D. No branding. No marketing. No finance. No software. No logistics.
All actives not measured by current trade deficit or a trade surplus formulations.
BBC: China shuts Marriott's website over Tibet and Taiwan error
Bloomberg: China steps up policing of multinationals over sovereignty
"China, emboldened by its growing economic and geopolitical influence, is showing less tolerance of what it sees as violations of its political bottom line by foreign companies. The warnings signal that the country may deploy more sticks against foreign companies that can’t risk losing business in the world’s second-biggest economy."
Chinese bitcoin miners eye sites in energy-rich Canada: Reuters reports, China has grown into one of the world’s biggest sources of cryptocurrency mining but there are signs Beijing is increasing scrutiny of the sector’s players and may ask local authorities to regulate their power use. Bitmain Technologies, operator of some of the largest mining farms in the country, is among several companies looking to expand overseas.
India Supreme Court judges: Democracy is in danger: BBC reports, four of India's most senior Supreme Court judges have publicly challenged the authority of the head of the judiciary - in an unprecedented move. In a letter and a press conference, the judges said Chief Justice Dipak Misra was assigning cases to benches of his preference, breaching court rules.
India's space program: India launched its 100th satellite on Fridayas Prime Minister Narendra Modi seeks to project the country as a global low-cost provider of services in space. India's space programme has a budget of around $4 billion and Modi's government hopes the latest launches will improve its prospects of winning a larger share of the more than $300 billion global space industry.
7 Reasons India is primed for growth https://goo.gl/8gAoWp
Merkel takes a big step toward forming a coalition government: WSJ reports, Angela Merkel made a breakthrough toward forming a government and securing her fourth term as Germany’s chancellor, according to a draft policy agreement reached by her conservative party and its center-left rivals.
100,000 = The number of barrels of oil smuggled out of Venezuela every day. At today's trading price that is $6,320,000 per day.
CBC: Canada's economy to 'wane,' says internal memo to finance minister
Reuters: Canada talks tough on trade as endgame on NAFTA talks nears
AMERICAN POLITICS
Politico: White House doesn't deny Trump's 'shithole' immigration remark
Trump tirade throws US immigration talks into turmoil: FT reports, storm of criticism greets remarks querying entry of people from ‘sh*t-hole countries’
NYT: Trump alarms lawmakers with disparaging words for Haiti and Africa
LAT: Trump's 'shithole' remark is the latest in long string of racial provocations
Immigration talks muddled amid President’s vulgar comments: WSJ reports, at a meeting with senators pitching a bipartisan deal on immigration, President Donald Trump asked why the U.S. would admit immigrants from what he described as “shithole” countries. In a Friday tweet, he appeared to deny using that language.
“We should have people from places like Norway.”
Time: Inside the GOP’s Rocky Relationship with Donald Trump https://goo.gl/9g7snm
WP: NAFTA supporters use stock market to try to dissuade Trump from withdrawing from trade deal
Negotiators have officially set a March deadline to rewrite NAFTA.
Economists think the US economy is at or near full employment: WSJ reports, nine in 10 forecasters surveyed by WSJ said the US has achieved or is approaching full employment
Steven Mnuchin’s ever-expanding orbit: Politico reports, the Treasury Secretary is using his location next to the White House to build his base of power — at the risk of irritating colleagues.
Axios: Mnuchin defends Davos trip: not a "hangout for globalists"
US delegation to Davos: The White House released the delegation that will be joining Trump in Davos. You can read the list here: https://goo.gl/Z6fwSp
Bannon will give closed-door testimony next week in House panel's Russia investigation.
ENTERPRISE
Uber’s secret tool for keeping the cops in the dark: Bloomberg reports, at least two dozen times, the San Francisco headquarters locked down equipment in foreign offices to shield files from police raids.
"Most tech companies don’t expect police to regularly raid their offices, but Uber isn’t most companies. The ride-hailing startup’s reputation for flouting local labor laws and taxi rules has made it a favorite target for law enforcement agencies around the world."
Facebook announced sweeping changes to the social media platform's News Feed in an effort to prioritize content from friends and family over more "passive content" from publishers and brands.
NYT: Facebook overhauls news feed to focus on what friends and family share
Mark Zuckerberg prioritizes "meaningful social interactions" on the platform's News Feed versus "relevant content."
Awesome more baby photos!
Facebook can’t be fixed: Facebook’s fundamental problem is not foreign interference, spam bots, trolls, or fame mongers. It’s the company’s core business model, and abandoning it is not an option.
NewCo
General Motors filed a petition with the National Highway Traffic Safety Administration requesting the agency allow GM to deploy driverless cars that do not have steering wheels or brake pedals by 2019.
Fiat Chrysler announced $2,000 bonuses for about 60,000 workers and plans to move some truck production to Michigan from Mexico.
Inside Amazon’s quest for global domination: WSJ reports, Amazon has invested aggressively to expand overseas but the results have been a mixed bag. https://goo.gl/7dKmg3
Overheard at CES: "It's spring for AR -- and winter for VR."
AR > VR
Dropbox has filed confidentially to go public, in what stands to be one of the largest tech IPOs in the past few years.
Shaquille O'Neal will be the first "chief fun officer" for Carnival Crusie Line.
TRENDS
The 8 greatest ideas of CES 2018 https://goo.gl/fioLsF
Automakers, in a blast from the past, retool iconic trucks: WSJ reports, car makers plan revivals of some of their best-known truck and SUV nameplates, bringing a wave of roomy, updated off-road vehicles to the U.S. market—a sign that consumers’ passion for oversize vehicles hasn’t faded.
CULTURE
Directors Guild of America nominations for the feature film award this year:
Greta Gerwig (“Lady Bird”)
Jordan Peele (“Get Out”)
Guillermo del Toro (“The Shape of Water")
Christopher Nolan (“Dunkirk”)
Martin McDonagh (“Three Billboards Outside Ebbing, Missouri”)
SPORT
NBA shoots for global growth with London showcase: FT reports, basketball franchises cast net wider in search of international audiences.
Guardian: London franchise moves closer as NFL confirms first game at Spurs stadium
Oakland-Seattle to be held at new stadium with two games at Wembley
NFL’s Mark Waller hints permanent franchise could happen in 2021