# Uber Disrupted An Industry, But Can It Make A Profit?



## Ben Hall (Apr 15, 2016)

It is unclear whether Uber is a sustainable long-term business that justifies its current valuation.

Ride services are fungible and thus competition will drive down prices to the point of marginal supply.

Both drivers and consumers have no brand loyalty and thus the only incentives are convenience and price.

The result is that the long-term valuations of Uber is not justified by the long-term prospects for the company.

http://seekingalpha.com/article/4003958-uber-disrupted-industry-can-make-profit


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