Re:Alphabet slides 5% after missing earnings expectations on...
by hibikir on Friday April 22, 2016 @08:34AM
(#11548628)
Business in self driving cars? How about the elderly that get to choose between depending on somebody, or driving unsafely? How about carting around too young to drive? Making current taxis obsolete? Self driving big rigs?
It wouldn't necessarily eat the entire car industry, but it's close.
That said, yes, they have to target problems that require a lot of capital, because, in practice, a company that will turn a profit no matter what you do is not one that is ever in a rush, or where hungry entrepreneurs go. They have to aim for niches where regular venture capital would never dare to go. This leads to lots of risky bets, looking for one that really moves the needle.
Remember Xerox PARC? That is what a monster like Alphabet ends up doing. It was not great for Xerox, but we all sure benefitted from their 'failures'
It wouldn't necessarily eat the entire car industry, but it's close.
That said, yes, they have to target problems that require a lot of capital, because, in practice, a company that will turn a profit no matter what you do is not one that is ever in a rush, or where hungry entrepreneurs go. They have to aim for niches where regular venture capital would never dare to go. This leads to lots of risky bets, looking for one that really moves the needle.
Remember Xerox PARC? That is what a monster like Alphabet ends up doing. It was not great for Xerox, but we all sure benefitted from their 'failures'