Prof. Mohanbir Sawhney thinks peer-to-peer economy companies like Uber and Air.Bnb, whose strength lies in their users, will force public companies to change as well
Uber has taken 2015 by storm. Uber closed USD $1.6 billion in convertible debt, received from Goldman Sachs Investment Bank’s wealth management clients. This enormous sum of money, added to earlier capital amounts totaling USD $3.3 billion, have already turned the transportation application from San Francisco into the start-up with the highest investor-based capital of all times. Uber, which was never IPOed, is already worth USD $41 billion. So, why is it still raising so much capital? Because conquering the world is a very expensive business. At the beginning of 2014, the company operated out of 60 cities in 21 countries; by the end of the year, using the application, its services were already available in more than 250 cities in 50 countries. Six years after its establishment, the company’s goal is clear: to enter every possible market in the world, before local competitors join the game.