- Larry Ellison is said to be far less bullish than Wall Street when it comes to Uber.
- The Oracle founder trashed Uber’s business model at a private San Francisco event this week, according to Barron’s.
- “They have nothing,” he reportedly said of the ride-hailing giant. “No technology. And no loyalty.”
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The billionaire entrepreneur Larry Ellison, who cofounded Oracle, didn’t mince words when it came to Uber and its cohort of ultravaluable tech companies, according to a new report in Barron’s.
The financial magazine reported Friday that the 75-year-old hosted a small cohort of entrepreneurs at his home in a posh neighbourhood of San Francisco, where he spent an hour answering questions about topics as varied as the gig economy, WeWork, and Tesla.
Uber, despite a $US57.5 billion market capitalisation following its May IPO, is “almost worthless,” Ellison reportedly said, adding that the company didn’t own cars or control its drivers and had an “app my cat could have written.”
Ellison also said Uber’s defensive moat wasn’t big enough to keep out new competitors. Uber, to its credit, has told investors it plans to offer fewer ride discounts to help juice its business and will instead focus on competing against Lyft on the merits of its product.
Ellison was said to have specifically highlighted the threat of competition from Tesla, which plans to launch a million-car-strong robo-taxi service next year. He reportedly said the company, whose board he joined in December, could lower taxi fares by two-thirds with self-driving cars.
“They have nothing,” he reportedly said of Uber, which has seen its stock price fall by nearly 20% since it first began trading. “No technology. And no loyalty.”
Read the full Barron’s report here »
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