Re:OpenAI reaches agreement to buy Windsurf for around $3B
by datadrivenangel on Wednesday May 07, 2025 @10:51AM
(#43916502)
1 especially is a social function. Having to have a million different apps is terrible, but if there is too much competition for drivers it's inevitable to churn through apps because of marketplace pricing and rent seeking on all sides
1. Solving a pain-point of many people re: hailing a cab, via an app that works everywhere.
2. Using VC funds to (initially) pay drivers more than you, the customer, were paying them.
3. Ignoring local regulations and passing the savings/convenience on to you.
1 is nice but I don't think they established much of a moat (both drivers and customers are willing to use multiple apps); 2 isn't sustainable in the long-term, and they failed to leverage 3 to establishing a permanent right to operate as they had been in most markets.
I think this makes Uber an even more interesting benchmark for other unicorns, since besides "solving a real problem without establishing a moat" they are also often burning through VC cash to prop up their business model while ignoring some laws which they may not be able to get away with ignoring long-term.