Google sticks money into Lyft at a $10 billion valuation:
First, this is not a transportation company. Lyft, like Uber, does not run cabs. It runs a taxi rank.
Second, no taxi rank has ever been worth $10 billion.
And if someone thinks it is then they have four things at the forefront of their minds.
The first is driving the competition out of the market.
The second is then screwing the consumer.
The third is screwing their staff.
And the fourth is then presenting the regulator with a fait accompli as they’re hoping all other games will have been driven out of town and that way they’ll earn hyper rents from their rank activities.
That’s how you can make a fortune from a cab booking service.
And it stinks.
As to no cab rank ever being worth $10 billion, well, someone’s just paid at that valuation so it is worth that.
But rather more, should it be worth that much? Lyft operates in 300 US cities. No, dunno what the cab ranks in 300 US cities are worth. A lot though I would think. And Uber seems to be 30% more efficient than traditional taxis. Yes, that’s the Alan Krueger. What’s the value of a 30% efficiency gain in the taxi markets of 300 US cities?
It’s not bupkiss, is it?