Being Business Minded (Part 1).

One of the fastest growing businesses in the world
today is a company called Uber. For those who do
not know what Uber is; it is essentially a Mobile
App (a computer program, using a cell phone),
which makes it possible for you to call a "taxi".
Uber does not own any taxis or cars of its own.
The App sends a message (similar to an SMS), to
the nearest registered but independent Uber driver,
within your vicinity. The car will usually arrive at
your location, within 5 minutes.
Whilst using one of these services, the owner of the
car, proudly told me that he was making a lot of
money, as the service brings him customers. Uber
take a commission, and also do the billing. All he
has to do is turn up. Then the driver, added this:
"Uber has no assets, just some computer servers."
Seeing that he was a smart entrepreneur, I then
engaged him in a wider conversation, about
business:
I asked him so many questions, that he finally
asked me, "are you planning to set up a similar
business, in Africa?"
"Not really.... I'm just "BUSINESS MINDED"; I make
it my business, to see the business side of any
business."
I then surprised him by telling him what I already
knew about Uber. For instance I told him, that
Uber, is now valued at more than $40bn.
They are more valuable than Anglo American,
which is one of the largest mining companies in
the world. Imagine, a taxi hailing service, is more
valuable than Anglo which has been around for
more than 100 years, employs tens of thousands of
people, and controls some of the largest deposits
of diamonds, platinum, iron ore, and coal; in the
whole world.
"Do you think that is fair?" The Uber driver asked.
"How can a company with no assets, be worth
more than a mining company that owns De Beers
Diamonds, or Anglo Platinum?!"
Uber has no assets. They do not even own the cell
phone network, on which their services operate.
"Who would have imagined that someone can
come along, and change a service as simple as
getting a taxi?"
$40bn.
As we neared the end of my journey, I suddenly
asked my driver, who incidentally was an African
from Ethiopian:
"How does Facebook and Twitter make money?"
"Through advertising", he shot back.
"What does that mean?" I asked laughing.
"Not really sure, sir."
I laughed some more, and as I got out of his car, I
was still laughing.
He looked bewildered, by my response. Sadly I did
not have a chance, to explain to him, why I was
laughing. He rushed to his next Uber client, I went
my way... Still laughing.
To be continued…