Jeffrey Wernick warned the public that Uber might change its business model into monetizing data

Key Points

*Uber wants you to tip its drivers to its advantage, and its business would never be profitable, the early Uber investor Jeffrey tells us here.

*Uber is changing its business model, Jeffrey emphasized.

Jeffrey Wernick, one of the early investors of Uber, demonstrated that the customers are funding Uber by tipping its drivers, but only for the investors' benefit. 

Uber used to promise that its customers don't need to pay gratuity to the drivers. However, it's not been the same case anymore since 2017. Uber reduced the compensation for its drivers. Therefore, Uber expects its valuable customers to tip the drivers. The customers out there are somehow not surprised by the change in the policy because it seems to be the ultimate fate of all aspiring companies that hit a specific size, at least those funded by investors' money. It's just a matter of time.

Since Uber has acknowledged that it might never be profitable, Jeffrey thought the company might enter the business by extracting even more from its customers by selling data. Jeffrey described in detail that the significant driver of valuation has nothing to do with Uber, but a low-interest rate policy designed to inflate asset prices. He also warned the public that Uber might be monetizing data. 

Jeffrey, also one of the early investors in bitcoin, has manifested his investing idea multiple times in the public. His main investment philosophy is to bet against government control. He always looked for ways to arbitrage the rules that disturb the price, quality, quantity, and access. Therefore, he was not excited about the IPO of Uber because Uber had changed its business model, which made it not a sharing economy, but a renting financed by a zero-interest rate environment.

Thanks for reading!

We'd love your feedback. Please leave your thoughts and suggestions here!