Don't worry folks, this isn't yet another Uber bashing or defending article. Since so many are already on that job, I'd rather pass the blame up & rile the investor universe a little instead :-)
First a disclaimer:
Conceptually I admire Uber - I dig the fact that something as mundane as local commute can have such disruptive business potential. As a user I loved the sheer convenience & practicality of an app based cab service that eliminates the fuss of 'booking' a chauffeured cab & thrilled that I'd always know how far my ride is & jus' how many more are creeping around near where I am. I liked it that this company made it possible for quite a few folks in the recession hit USA to make a decent living without looking too bad doing that.
Okay the real poser now
Among all the financial greats such as Fidelity Investments, Wellington Management, Black Rock Inc, Summit Partners, Kleiner Perkins, Google Ventures, Menlo Ventures et al who poured in a whopping $1.2 billion into Uber merely a few months ago, is there one that had raised/ browsed over the possibility that Uber with it's now famous thumbing-its-nose-at-rules approach is potentially waltzing each day into a new & huge regulatory risk?
Is it possible at all that there were absolutely no indicators of this looming risk in July 2014 considering that by December 2014 Uber managed to get into trouble in 15 different countries ranging from USA (California, Nevada, Portland); Canada, UK, France, Germany, Spain, Belgium, Netherlands, Japan, Thailand, South Korea, Philippines, Taiwan and India?
Are the PE, VC organizations in their quest to go after high potential start-ups not sufficiently factoring in any ethical, livelihood & regulatory aspects, that could turn into risks, before unloading truck loads of money? If indeed these aspects were overlooked by them, is it that in their over-enthusiastic support of Uber & it's disruptive enterprise model, the investing universe did a major disservice to them by not letting them get aware of a potential risk they're aggregating (pun intended) with each city they are expanding into?
I really hope Uber cleans-up & pursues its definitive potential so I could hail my fav' cab again soon within my city and elsewhere too - I could be dead-wrong but I feel though that the investor organizations need to do some soul-searching into what exactly their due-diligence is all about or not & if their multibillion valuations are indeed less market regulatory risk.
Post Thought - 11th December
The banning of Uber in India is akin to a parent banishing the teenager from home just because she/ he is caught smoking for the very first-time. The normal approach would be to tell em' 'you are grounded' & proceed to put some sense in the kid which in case of Uber would be asking them to suspend their operations till all aspects are cleared out - I hope Mr. PM will raise above petty politicking and be the stern nurturer of progress people expect him to be.