Friday, December 19, 2014

Checking in on the last next big thing

I'm working on a longer piece that involves Uber and I got to thinking about the big discussion we had about Groupon back in 2011. Many of the arguments currently being used to justify Uber's $40 billion valuation (rapid growth, huge potential market, a foundation of new economic and technological paradigms) were also being used to justify faith in Groupon.

I don't want to make too much of the analogy -- they are very different companies with very different business models -- but it is still useful to stop and think about how that bet worked out.

[If you want to get a head start on the Uber thread, check out these exceptionally thorough analyses from Talking Points Memo and NYU Finance Professor Aswath Damodaran.]

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