hello everybody
Tom Ellsworth here and welcome back to
case studies with the biz doc this week
it’s the making of Travis kalanick and
uber we’re going to find out what made
Buber co-founder and CEO Travis kalanick
into the man he is today more
importantly the highly successful leader
and CEO and along the way we’re going to
look at the first four rounds of
financing for uber in a later case study
we’re going to dive into burr a little
deeper and take a look at what they did
to overcome controversies when they
reached opposition in the face of their
success and how a great company recovers
and keeps growing at a record rate but
for today let’s dive into what made over
and what things were in Travis’s life
that formed him into the CEO we know
today
today’s core points are the following
three items number one most great CEOs
don’t come out of nowhere they had some
sort of learnings or experience along
the way there are very few Bill Gates
and Mark Zuckerberg who dropped out of
Harvard joined a company and then went
forward and indicates Zuckerberg and
Gates they both had a lot of experience
along the way other CEOs don’t have it
that way they learn things along the way
and that’s point one most great CEOs
don’t come out of nowhere point two when
you’re building a company assemble a
great core team early you can’t do it
yourself but keep yourself in the vein
of the Lean Startup a great book that I
recommend by Erich Rhys keep it lean but
get a great team of core people that
will be the brain trust and the genius
that moves your company forward and
point number three the moment you know
what you’ve got go big and go fast and
if you have a great core team that’s
your platform to go big and go fast
because you can’t do it alone
so those are the core points and now
let’s dive into the life of Travis
Callen I can take a look at the things
in his background and the founding of
uber Travis turned 40 this year he was
born in 1976 in Los Angeles California
he grew up in the valley as they call it
in a place called Northridge Northridge
was famous for 1990
was a massive earthquake that made world
headlines and that’s the area where he
grew up after getting out of high school
in the valley he got into UCLA in a
computer engineering degree path that
was his major that’s what he was
studying so as you can see this is a
very bright guy that got into a great
college and he was studying pure geek a
lot of good geek that goes into that
some of the greatest companies in the
world are made out of Comp Sci majors
and engineers who are just take that
geekdom into stardom and build fantastic
companies Travis was no different but
apparently he had a little bit of an
itch to do more than just go to college
because at the age of 22 in 1998 he
dropped out of UCLA something that I
happen to think is actually good you
need to get a degree to learn things
like Comp Sci
but I am there’s a side of me that
doesn’t believe that everyone should go
to college but that’s for another story
in another day but in this case he drops
out and he joins a company called scour
and scour was a peer-to-peer search
engine that included video not just
audio now for those of you that remember
there’s a little company called Napster
that was doing peer-to-peer audio and
allowed people to share songs without
paying for them or one person paid over
here and a thousand people shared the
song and meanwhile the artists and a
record company got upset yeah that was
peer to peer and Travis was working at a
company called scour now it had some
interesting first investment which put
Travis in contact with some big players
one of those was Michael Ovitz former
president of Disney and the founder of
mega agency CAA
creative arts agency and Ron Burkle of
Yucaipa companies a massive private
equity company so here he is dropping
out a UCLA joining scour and getting an
acquaintanceship with some very big
players well in October of 2000 if you
go back and take a look at history
you’ll see that the peer-to-peer
companies were getting sued and that’s
what happened scour was sued by the
Motion Picture Association of America
and the Recording Association of America
and about 30 other plaintiffs for what
was said to be approximately 250 bill
dollars okay if you’re sued for 250
billion dollars it’s really not a
problem and let me tell you why if
someone Sue’s you or me for a million
dollars we’re in trouble
they could take everything we have from
us but if they’re suing us for 250
billion dollars
they’re in trouble we don’t have that
you can sue me for that you can sue me
for Earth the value of Earth I haven’t
got it so good luck with that
and what really happened is it forced
the company into bankruptcy so they
filed chapter 11 bankruptcy after being
sued for amount which is bigger than the
gross domestic product of Nicaragua you
know they said okay that’s it but
undaunted travis creates red swoosh it
was also a peer-to-peer file-sharing
company so he was staying in this
peer-to-peer space and yet we should
stay tuned because Napster was also a
peer-to-peer and there’s some guys at
Napster the peer-to-peer community was a
small world so we’re going to see a
relationship here show up later which is
really important even in the midst of
failure sometimes relationships you have
here become in handy here so don’t make
enemies move on because you never know
who can come back and help you later so
anyway this runs for about five six
years and he sells it to Akamai he’s 30
years old now and he sells a company to
Akamai
so he experienced dropping out of school
joining a company that gets sued and
goes bankrupt and starting a company
that doesn’t go crazy it only sells for
something around 20 million dollars and
he funny thing is he said that was kind
of a revenge business Kalyn ik did an
interview a Fast Company or he said
basically everybody that was suing him
over here became customers of red swoosh
so he thought it was kind of ironic and
he referred to it as the great revenge
business anyway he sells it so he’s had
a successful sale and he’s at a
conference and he’s at a web technology
conference and he hears some things that
lead him to think about you know maybe
ordering a black car you know town car
to take you to the airport or out to
dinner or something maybe that could be
made easier by using them you know a
cell phone app and so the concept
is born that would become uber and so
uber is founded in March 2009 as a
company called uber cab there was a
black car service and Travis was one of
the co-founders and he back in those
days he called himself a mega advisor in
the chief incubator he wasn’t the CEO as
of yet in 2010 in early 2010 a guy named
Ryan graves joins a real product guru
and he becomes a per CEO so they’re
working on this putting it together and
in June of 2010 uber launches in San
Francisco and at the time an uber black
car cost like 1.5 times the cost as a
cab but guess what you could get it
really quick and you can get it from
your phone and you can see how long it
would take so if we think back to blue
ocean strategy and those four points
that you remember about that some very
interesting things happen what did they
do with uber
they added ease of use with technology
they reduce the hassle of waiting and
hailing a cab on the street is that guy
available is that guy available is that
guy available we’ve all been there they
also increase the availability of rides
because you can see cabs and weren’t
necessarily on the street you could see
cars now with the uber app that maybe
where five streets away you could signal
them to come to you so they increase the
availability of rides and then they
eliminated the number one thing that we
hate about cabs is the stinky car that
is just atrocious you don’t ride in cabs
because you want to we’ve always written
in cabs because we had to and we ignore
the thoughts of whatever has happened in
the backseat been thrown up in the
backseat or left in the backseat the
whole smelly cab experience we set aside
and guess what all of those four factors
is pure blue ocean so here comes ooo BRR
a blue ocean in getting rides for you
and me to go where we need to go so
there you have 2010 well in October of
2010 they raised 1.25 million in seed
funding they got it from first round
capital a guy named Chris Sacca was a
friend of Travis’s who was a lawyer who
worked at Google he’d also been a guest
on the Shark Tank show on TV so he had
been around with some early stage you
know wild ideas of course and another
investor Napster co-founder Shawn
Fanning back from the peer-to-peer days
back here becomes an early seed investor
in uber what goes around comes around
and sometimes people that you worked
with over here come in handy over here
so there it is December of 2010 after
this you know wonderful successful
launch in San Francisco and Ryan Graves
who was a CEO he decided he’d be the GM
and Travis becomes the CEO and so there
you have it
in 2010 he becomes the CEO so take a
look at what he’s learned in these 12
years from dropping out of UCLA to
becoming CEO of uber if you didn’t know
this history you would think wow he just
got lucky he had an idea start a company
there is no luck here this was a 12 year
education he got a master’s degree in
experience failure success founding a
company and all of the headaches that go
along with it that’s what led to the
creation of Travis kalanick who’s the
now the CEO of uber as 2010 comes to a
close well things are off and running
and once you have your seed funding and
you’re successful and you got a good
team in place and a capable CEO guess
what it’s time for your series a
financing your first real financing and
they raised eleven million dollars in a
round that was led by benchmark and it
was a 60 million dollar value and eleven
million dollar into the company invested
and Bill Gurley the legendary VC Bill
Gurley a benchmark joins the Board of
Directors the Bill Gurley was a guy that
invested in a company that I had a
privilege to be a part of jammed at
mobile he was in our series D but he was
a guy who is I had a lot of respect for
and has been always on the forefront of
some real innovative ideas and
nonetheless there he is
series a 60 million dollar valuation
well in May of 2011 just a couple months
later they actually launched in New York
City it was a little controversial
because New York City is a Union cab
town but
nonetheless they launched today it’s one
of their biggest markets and what’s
interesting five years later after
launching over a one-year period from
April 2015 to April 2016
uber average 170,000 trips a day in New
York so five years later and all that
controversy later New York is one of
their most controversial but one of
their most successful markets now
there’s also an interesting thing that
went on in 2011 there is a conference in
the fourth quarter of 2011 called fail
con FAI lco and fail con like the
conference talking about failure and you
know who spoke Travis kalanick and you
know what he said he said the 10 years
before uber was a case study in failure
and he openly talked about all the
things that led him to do this and do
that and the experience that made him
who he is that day so you should go
google that video and take a look at
Travis’s comments at fail College 2011
you’ll learn a lot from it in December
2011 Hoover decides it’s time to go
international so they start with Paris
France and they raise a 32 million
dollar series B so now in the course of
just a few months they’ve raised you
know 43 million dollars and the people
in series B check this out Menlo
Ventures a leading VC not as good or as
big as benchmark but certainly a high
quality VC Amazon’s Jeff Bezos was
involved in goldman sachs and if you
don’t think the goldman sachs boys make
an investment here thinking about a
future IPO you’re not paying attention
that’s exactly how some banks get
involved early so you know five years
later here in 2016 we look back and
there were riots in france and protests
because uber had been very successful
and now they were trying to force you
know basically the entitled cab drivers
were trying to force legislation and
stuff to push her out of the way but
there would be no uber if people didn’t
like it didn’t want to pay for it and so
they’re trying to legislate away free
enterprise it’s just not going to work
but anyway so that’s what
happening this year but the seeds of
which were 2011 as they raised 32
million dollars and launched their first
international market Paris France
they continued to grow and move and in
July of 2012 they announced Buber ex and
it wasn’t just black cars anymore
now you can get a Prius and it costs a
little less than the black car so they
were just applying their technology and
their expertise building another product
chapter putting their mind to good use
and so you can see they didn’t just say
there’s all about black car is all about
black car is all about limos nope they
were thinking beyond and as we will see
in a few minutes they were thinking well
beyond so that’s service about again 35
percent less expensive than a black car
you had Priuses picking you up and there
you have it well in August of 2013
now we’re less than two years later they
continuing to grow and add cities and
controversy would come up from unionized
cabbies but here comes the big money
they raised two hundred and fifty eight
million dollars from Google Ventures and
by the way it was a three point seven
six billion dollar valuation they were
now what people like to call as a
unicorn which is a company that’s a
start-up and suddenly worth more than a
billion dollars and that was just
incredible so they’re there for A’s and
their success you know drove a need for
capital but with that came the valuation
this is part of my point about going big
and going fast with that within a year
of that July of 14 so you know July of
13 July of 14 they raised 1.4 billion
dollars in a series D at a 17 billion
dollar valuation let me say that again
17 billion dollar valuation and a one
point mover was the most valuable
private company nowhere that hasn’t gone
public yet startup Badman gone public
and they continued to you know invest in
technology and imply that technology for
instance they started uberpool which you
and i may know about it’s a car pool you
can see people going your direction you
could hop in an uber with them you only
pay for your part of the trip but you’re
all splitting it so it’s efficient for
two or three people to share one goober
then they started goober rush which was
a bicycle messaging service in New York
also started over cargo where you’re
allowing people to pick things up and
drop it off in trucks in small vans and
then uber eats and as a matter of fact
you know the founder of value tainment
patrick by david he use uber eats a lot
because we’re working crazy hours and we
want good meals delivered and so we’re
customers of ubereats we say hey we need
to get something get me one of these one
of those we call for uber eats and in
Greek food is here and that is an
example of strategy thinking beyond and
strategy applying saying you know we’ve
got this technology with mapping we know
how to map things we know how to make
efficient routes we knew how to do all
these things want to deliver food want
to pick up cargo
why don’t gosh why shouldn’t bicycle
messengers use this as well
and that is the first chapter of uber
going all the way to their series d the
first six years with the growth and as
you know if you read the headlines and I
know you pay attention because these
viewers I know you asked me questions
and thing that show me that you’re
really diving in I’m going to do a
second case study that talks about 2014
to 2016 and all the things that Ebor
face such as facing competition from
lyft not smaller but also a competitor
facing the City of Austin Texas putting
in legislation that actually led to uber
and lyft saying okay the hell with it
we’ll leave Austin Texas see what the
people have to say about that maybe they
go back to City Hall and say hey you
know we need more than just taxis come
back well we’re going to see how that
going to play out we’re also going to
see some things happen internationally
such as having to leave Hungary because
Hungary forced federal legislation down
their throat and basically defended
legacy inefficient cab service socialist
entitlement squashing free enterprise at
its worst happened in Hungary and so
we’re going to see how Ober maintains
its status of an incredible growing
company and raises billions and billions
of more dollars in capital to continue
global expansion
and becomes a fantastic mature company
responding the things that are going on
around it under the leadership of a UCLA
dropout named Travis kalanick and that
my friends is chapter one of Buber the
making of Travis kalanick and uber
reminding you of those simple points
screech CEOs quite often don’t come out
of nowhere they have a lot of experience
and if you’re out there getting that
experience you could be the founder of
something really special when you get
there and my other two points one put a
great core team around you early but
stay lean and then when you know you got
something and it’s time to go big go big
and go fast and as you can see Ober went
out to get the capital to do exactly
that I’m looking forward to another time
where we dive into the other side of
Eber and I gave you a little sneak peek
of that and for today we are saying
thank you and I’ll see you next time and
please subscribe to value tame it the
best channel on the internet for content
for entrepreneurs until next time I’m
Thomas or that I hope I left you better than I found it
Tom Ellsworth here and welcome back to
case studies with the biz doc this week
it’s the making of Travis kalanick and
uber we’re going to find out what made
Buber co-founder and CEO Travis kalanick
into the man he is today more
importantly the highly successful leader
and CEO and along the way we’re going to
look at the first four rounds of
financing for uber in a later case study
we’re going to dive into burr a little
deeper and take a look at what they did
to overcome controversies when they
reached opposition in the face of their
success and how a great company recovers
and keeps growing at a record rate but
for today let’s dive into what made over
and what things were in Travis’s life
that formed him into the CEO we know
today
today’s core points are the following
three items number one most great CEOs
don’t come out of nowhere they had some
sort of learnings or experience along
the way there are very few Bill Gates
and Mark Zuckerberg who dropped out of
Harvard joined a company and then went
forward and indicates Zuckerberg and
Gates they both had a lot of experience
along the way other CEOs don’t have it
that way they learn things along the way
and that’s point one most great CEOs
don’t come out of nowhere point two when
you’re building a company assemble a
great core team early you can’t do it
yourself but keep yourself in the vein
of the Lean Startup a great book that I
recommend by Erich Rhys keep it lean but
get a great team of core people that
will be the brain trust and the genius
that moves your company forward and
point number three the moment you know
what you’ve got go big and go fast and
if you have a great core team that’s
your platform to go big and go fast
because you can’t do it alone
so those are the core points and now
let’s dive into the life of Travis
Callen I can take a look at the things
in his background and the founding of
uber Travis turned 40 this year he was
born in 1976 in Los Angeles California
he grew up in the valley as they call it
in a place called Northridge Northridge
was famous for 1990
was a massive earthquake that made world
headlines and that’s the area where he
grew up after getting out of high school
in the valley he got into UCLA in a
computer engineering degree path that
was his major that’s what he was
studying so as you can see this is a
very bright guy that got into a great
college and he was studying pure geek a
lot of good geek that goes into that
some of the greatest companies in the
world are made out of Comp Sci majors
and engineers who are just take that
geekdom into stardom and build fantastic
companies Travis was no different but
apparently he had a little bit of an
itch to do more than just go to college
because at the age of 22 in 1998 he
dropped out of UCLA something that I
happen to think is actually good you
need to get a degree to learn things
like Comp Sci
but I am there’s a side of me that
doesn’t believe that everyone should go
to college but that’s for another story
in another day but in this case he drops
out and he joins a company called scour
and scour was a peer-to-peer search
engine that included video not just
audio now for those of you that remember
there’s a little company called Napster
that was doing peer-to-peer audio and
allowed people to share songs without
paying for them or one person paid over
here and a thousand people shared the
song and meanwhile the artists and a
record company got upset yeah that was
peer to peer and Travis was working at a
company called scour now it had some
interesting first investment which put
Travis in contact with some big players
one of those was Michael Ovitz former
president of Disney and the founder of
mega agency CAA
creative arts agency and Ron Burkle of
Yucaipa companies a massive private
equity company so here he is dropping
out a UCLA joining scour and getting an
acquaintanceship with some very big
players well in October of 2000 if you
go back and take a look at history
you’ll see that the peer-to-peer
companies were getting sued and that’s
what happened scour was sued by the
Motion Picture Association of America
and the Recording Association of America
and about 30 other plaintiffs for what
was said to be approximately 250 bill
dollars okay if you’re sued for 250
billion dollars it’s really not a
problem and let me tell you why if
someone Sue’s you or me for a million
dollars we’re in trouble
they could take everything we have from
us but if they’re suing us for 250
billion dollars
they’re in trouble we don’t have that
you can sue me for that you can sue me
for Earth the value of Earth I haven’t
got it so good luck with that
and what really happened is it forced
the company into bankruptcy so they
filed chapter 11 bankruptcy after being
sued for amount which is bigger than the
gross domestic product of Nicaragua you
know they said okay that’s it but
undaunted travis creates red swoosh it
was also a peer-to-peer file-sharing
company so he was staying in this
peer-to-peer space and yet we should
stay tuned because Napster was also a
peer-to-peer and there’s some guys at
Napster the peer-to-peer community was a
small world so we’re going to see a
relationship here show up later which is
really important even in the midst of
failure sometimes relationships you have
here become in handy here so don’t make
enemies move on because you never know
who can come back and help you later so
anyway this runs for about five six
years and he sells it to Akamai he’s 30
years old now and he sells a company to
Akamai
so he experienced dropping out of school
joining a company that gets sued and
goes bankrupt and starting a company
that doesn’t go crazy it only sells for
something around 20 million dollars and
he funny thing is he said that was kind
of a revenge business Kalyn ik did an
interview a Fast Company or he said
basically everybody that was suing him
over here became customers of red swoosh
so he thought it was kind of ironic and
he referred to it as the great revenge
business anyway he sells it so he’s had
a successful sale and he’s at a
conference and he’s at a web technology
conference and he hears some things that
lead him to think about you know maybe
ordering a black car you know town car
to take you to the airport or out to
dinner or something maybe that could be
made easier by using them you know a
cell phone app and so the concept
is born that would become uber and so
uber is founded in March 2009 as a
company called uber cab there was a
black car service and Travis was one of
the co-founders and he back in those
days he called himself a mega advisor in
the chief incubator he wasn’t the CEO as
of yet in 2010 in early 2010 a guy named
Ryan graves joins a real product guru
and he becomes a per CEO so they’re
working on this putting it together and
in June of 2010 uber launches in San
Francisco and at the time an uber black
car cost like 1.5 times the cost as a
cab but guess what you could get it
really quick and you can get it from
your phone and you can see how long it
would take so if we think back to blue
ocean strategy and those four points
that you remember about that some very
interesting things happen what did they
do with uber
they added ease of use with technology
they reduce the hassle of waiting and
hailing a cab on the street is that guy
available is that guy available is that
guy available we’ve all been there they
also increase the availability of rides
because you can see cabs and weren’t
necessarily on the street you could see
cars now with the uber app that maybe
where five streets away you could signal
them to come to you so they increase the
availability of rides and then they
eliminated the number one thing that we
hate about cabs is the stinky car that
is just atrocious you don’t ride in cabs
because you want to we’ve always written
in cabs because we had to and we ignore
the thoughts of whatever has happened in
the backseat been thrown up in the
backseat or left in the backseat the
whole smelly cab experience we set aside
and guess what all of those four factors
is pure blue ocean so here comes ooo BRR
a blue ocean in getting rides for you
and me to go where we need to go so
there you have 2010 well in October of
2010 they raised 1.25 million in seed
funding they got it from first round
capital a guy named Chris Sacca was a
friend of Travis’s who was a lawyer who
worked at Google he’d also been a guest
on the Shark Tank show on TV so he had
been around with some early stage you
know wild ideas of course and another
investor Napster co-founder Shawn
Fanning back from the peer-to-peer days
back here becomes an early seed investor
in uber what goes around comes around
and sometimes people that you worked
with over here come in handy over here
so there it is December of 2010 after
this you know wonderful successful
launch in San Francisco and Ryan Graves
who was a CEO he decided he’d be the GM
and Travis becomes the CEO and so there
you have it
in 2010 he becomes the CEO so take a
look at what he’s learned in these 12
years from dropping out of UCLA to
becoming CEO of uber if you didn’t know
this history you would think wow he just
got lucky he had an idea start a company
there is no luck here this was a 12 year
education he got a master’s degree in
experience failure success founding a
company and all of the headaches that go
along with it that’s what led to the
creation of Travis kalanick who’s the
now the CEO of uber as 2010 comes to a
close well things are off and running
and once you have your seed funding and
you’re successful and you got a good
team in place and a capable CEO guess
what it’s time for your series a
financing your first real financing and
they raised eleven million dollars in a
round that was led by benchmark and it
was a 60 million dollar value and eleven
million dollar into the company invested
and Bill Gurley the legendary VC Bill
Gurley a benchmark joins the Board of
Directors the Bill Gurley was a guy that
invested in a company that I had a
privilege to be a part of jammed at
mobile he was in our series D but he was
a guy who is I had a lot of respect for
and has been always on the forefront of
some real innovative ideas and
nonetheless there he is
series a 60 million dollar valuation
well in May of 2011 just a couple months
later they actually launched in New York
City it was a little controversial
because New York City is a Union cab
town but
nonetheless they launched today it’s one
of their biggest markets and what’s
interesting five years later after
launching over a one-year period from
April 2015 to April 2016
uber average 170,000 trips a day in New
York so five years later and all that
controversy later New York is one of
their most controversial but one of
their most successful markets now
there’s also an interesting thing that
went on in 2011 there is a conference in
the fourth quarter of 2011 called fail
con FAI lco and fail con like the
conference talking about failure and you
know who spoke Travis kalanick and you
know what he said he said the 10 years
before uber was a case study in failure
and he openly talked about all the
things that led him to do this and do
that and the experience that made him
who he is that day so you should go
google that video and take a look at
Travis’s comments at fail College 2011
you’ll learn a lot from it in December
2011 Hoover decides it’s time to go
international so they start with Paris
France and they raise a 32 million
dollar series B so now in the course of
just a few months they’ve raised you
know 43 million dollars and the people
in series B check this out Menlo
Ventures a leading VC not as good or as
big as benchmark but certainly a high
quality VC Amazon’s Jeff Bezos was
involved in goldman sachs and if you
don’t think the goldman sachs boys make
an investment here thinking about a
future IPO you’re not paying attention
that’s exactly how some banks get
involved early so you know five years
later here in 2016 we look back and
there were riots in france and protests
because uber had been very successful
and now they were trying to force you
know basically the entitled cab drivers
were trying to force legislation and
stuff to push her out of the way but
there would be no uber if people didn’t
like it didn’t want to pay for it and so
they’re trying to legislate away free
enterprise it’s just not going to work
but anyway so that’s what
happening this year but the seeds of
which were 2011 as they raised 32
million dollars and launched their first
international market Paris France
they continued to grow and move and in
July of 2012 they announced Buber ex and
it wasn’t just black cars anymore
now you can get a Prius and it costs a
little less than the black car so they
were just applying their technology and
their expertise building another product
chapter putting their mind to good use
and so you can see they didn’t just say
there’s all about black car is all about
black car is all about limos nope they
were thinking beyond and as we will see
in a few minutes they were thinking well
beyond so that’s service about again 35
percent less expensive than a black car
you had Priuses picking you up and there
you have it well in August of 2013
now we’re less than two years later they
continuing to grow and add cities and
controversy would come up from unionized
cabbies but here comes the big money
they raised two hundred and fifty eight
million dollars from Google Ventures and
by the way it was a three point seven
six billion dollar valuation they were
now what people like to call as a
unicorn which is a company that’s a
start-up and suddenly worth more than a
billion dollars and that was just
incredible so they’re there for A’s and
their success you know drove a need for
capital but with that came the valuation
this is part of my point about going big
and going fast with that within a year
of that July of 14 so you know July of
13 July of 14 they raised 1.4 billion
dollars in a series D at a 17 billion
dollar valuation let me say that again
17 billion dollar valuation and a one
point mover was the most valuable
private company nowhere that hasn’t gone
public yet startup Badman gone public
and they continued to you know invest in
technology and imply that technology for
instance they started uberpool which you
and i may know about it’s a car pool you
can see people going your direction you
could hop in an uber with them you only
pay for your part of the trip but you’re
all splitting it so it’s efficient for
two or three people to share one goober
then they started goober rush which was
a bicycle messaging service in New York
also started over cargo where you’re
allowing people to pick things up and
drop it off in trucks in small vans and
then uber eats and as a matter of fact
you know the founder of value tainment
patrick by david he use uber eats a lot
because we’re working crazy hours and we
want good meals delivered and so we’re
customers of ubereats we say hey we need
to get something get me one of these one
of those we call for uber eats and in
Greek food is here and that is an
example of strategy thinking beyond and
strategy applying saying you know we’ve
got this technology with mapping we know
how to map things we know how to make
efficient routes we knew how to do all
these things want to deliver food want
to pick up cargo
why don’t gosh why shouldn’t bicycle
messengers use this as well
and that is the first chapter of uber
going all the way to their series d the
first six years with the growth and as
you know if you read the headlines and I
know you pay attention because these
viewers I know you asked me questions
and thing that show me that you’re
really diving in I’m going to do a
second case study that talks about 2014
to 2016 and all the things that Ebor
face such as facing competition from
lyft not smaller but also a competitor
facing the City of Austin Texas putting
in legislation that actually led to uber
and lyft saying okay the hell with it
we’ll leave Austin Texas see what the
people have to say about that maybe they
go back to City Hall and say hey you
know we need more than just taxis come
back well we’re going to see how that
going to play out we’re also going to
see some things happen internationally
such as having to leave Hungary because
Hungary forced federal legislation down
their throat and basically defended
legacy inefficient cab service socialist
entitlement squashing free enterprise at
its worst happened in Hungary and so
we’re going to see how Ober maintains
its status of an incredible growing
company and raises billions and billions
of more dollars in capital to continue
global expansion
and becomes a fantastic mature company
responding the things that are going on
around it under the leadership of a UCLA
dropout named Travis kalanick and that
my friends is chapter one of Buber the
making of Travis kalanick and uber
reminding you of those simple points
screech CEOs quite often don’t come out
of nowhere they have a lot of experience
and if you’re out there getting that
experience you could be the founder of
something really special when you get
there and my other two points one put a
great core team around you early but
stay lean and then when you know you got
something and it’s time to go big go big
and go fast and as you can see Ober went
out to get the capital to do exactly
that I’m looking forward to another time
where we dive into the other side of
Eber and I gave you a little sneak peek
of that and for today we are saying
thank you and I’ll see you next time and
please subscribe to value tame it the
best channel on the internet for content
for entrepreneurs until next time I’m
Thomas or that I hope I left you better than I found it
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