In August 2008, the dream of the next generation of automotive services was just a pitch deck on Uber co-founder Garrett Camp’s computer.
Uber, the ride-hailing app, now has a market capitalization of over $63 billion (8.5 trillion yen, equivalent to 135 yen to the dollar), and has become a network that allows you to dispatch rides in over 10,000 cities with the touch of a button.
In this article, we will disclose the pitch deck “UberCab” (the original name of the service) that the company used to raise funds from investors when it was founded.
How did the founders explain Uber’s worldview in 2008 and successfully raise funds?
The first slide begins with a time capsule to 2008.Yes, it’s a Blackberry device.
[Japanese translation of slides]
Back in 2008, the act of “hailing a taxi” was completely different than it is now.
[Japanese translation of slides]
Camp emphasized the “wasted time” of taxis. A 2018 report by Schaller Consulting found that taxis and for-hire cars travel an average of 2.1 miles between dropping off a passenger and picking up another.
Also, in 2019, most of the taxis in New York were Toyota Camrys. The Toyota Camry’s environmental rating, according to New York City, is approximately 10.6 kilometers per liter.
Taxi industry disruptor
[Japanese translation of slides]
As Uber expanded in New York, the value of taxi licenses (a limited number of which are sold by the city at auction) plummeted by 75%. The taxi industry largely blames ride-hailing companies like Uber and Lyft. However, according to a 2019 New York Times investigation, the value of taxi licenses was soaring at the time due to a bubble reminiscent of the 2008 subprime mortgage crisis.
Camp said Uber will become the “NetJets of auto services.”
[Japanese translation of slides]
In a nutshell, this was, and still is, Uber’s “value proposition.” NetJets is a company that sells ownership of small portions of private jets.
Uber initially wanted to screen its customers.
[Japanese translation of slides]
Nowadays, all you need is a smartphone and a credit (or debit) card to connect with a driver. GPS and photography also made it easier to find each other—and that continues to be the case today.
Back then, it wasn’t just about using a luxury Mercedes sedan.
[Japanese translation of slides]
According to initial presentation materials, Uber’s vehicles were to be Mercedes luxury sedans. The most popular cars at the moment are the Toyota Prius, Honda Civic, and Toyota Camry.
Uber is “definitely profitable”
[Japanese translation of slides]
From its founding to September 2021, Uber has not been able to turn a profit for the entire year.
Car arrangements can be made via GPS or text message
[Japanese translation of slides]
GPS, of course, is still the guiding principle of the Uber app. Meanwhile, arrangements by text message seem to have disappeared.
Particularly important when arranging rides via text is the ability to save destinations with specific labels.
[Japanese translation of slides]
Still, being able to save addresses in the app for easy selection is a huge time saver.
All of the use cases envisioned by Uber still apply today.
[Japanese translation of slides]
Uber is cheaper than limousines and safer than taxis.
[Japanese translation of slides]
Some of the environmental benefits Uber predicted didn’t materialize
[Japanese translation of slides]
According to Schaller Consulting’s 2018 report, on average only 63% of distances traveled in taxis and private cars carry passengers.
The current vehicle is quite different from what was originally planned.
[Japanese translation of slides]
Most of Uber’s current vehicles are Toyota Prius and Camry, Honda Accord, Ford Fusion, and other luxury models that Uber listed in 2008.
Uber currently operates in over 60 countries
[Japanese translation of slides]
The camp had plans for surge pricing (a variable rate system that increases prices during periods of high demand).
[Japanese translation of slides]
Traditional surge pricing is now largely in place. But Uber predicted early on that by using travel data to predict demand, it could incentivize drivers in areas with increased requests for rides.
Demand forecasting remains Uber’s most valuable product.
[Japanese translation of slides]
All of this ultimately boils down to data.
Uber’s market capitalization has fallen significantly since its peak.However, the market size is still significantly higher than the estimated market size of $4.2 billion (approximately 462 billion yen) 10 years ago.
[Japanese translation of slides]
Transportation to the airport still accounts for the majority of Uber usage
[Japanese translation of slides]
Uber has become so popular for airport transportation that some cities have changed their pick-up and drop-off lanes to accommodate ride-hailing services. However, there are still taxi lanes.
Uber currently operates in 400 cities, but its original goal was to be much smaller.
[Japanese translation of slides]
Uber has comfortably achieved the ‘best-case scenario’ in terms of profitability.
[Japanese translation of slides]
In the third quarter of 2018, Uber achieved sales of $2.95 billion.
2008 smartphone market breakdown also shows how short-lived technology can be
[Japanese translation of slides]
Samsung currently holds the largest share of the smartphone market, with Nokia having only a fraction of what it was in 2008.
The company’s “optimization for the future” has almost been achieved.
[Japanese translation of slides]
Referrals are still a big part of Uber’s business, but not all of the following has happened:
[Japanese translation of slides]
Uber had its sights set on healthcare and government transportation, but has changed direction
[Japanese translation of slides]
However, health care is still relevant. In March 2018, Uber announced Uber Health, which provides “reliable, comfortable transportation for patients.” This could be a big area for Uber and its rival Lyft. Around this time, Lyft announced that it had hired a new VP (vice president) for its healthcare business.
From then on, everyone knows
[Japanese translation of slides]
In 2010, two years after this presentation was created, Uber changed its brand from UberCab to Uber, and around the same time it also launched an Android version.
*This article was first published on September 10, 2021.
[Original text]
(Translated by Satomi Matsumaru, edited by Sho Noda)
Source: BusinessInsider
Emma Warren is a well-known author and market analyst who writes for 24 news breaker. She is an expert in her field and her articles provide readers with insightful and informative analysis on the latest market trends and developments. With a keen understanding of the economy and a talent for explaining complex issues in an easy-to-understand manner, Emma’s writing is a must-read for anyone interested in staying up-to-date on the latest market news.