What makes a company like Uber valuable?
Attorney Michael Lasky explains what makes companies valuable.
Email: [email protected]
Phone: (404) 441-1750 or (952) 253-4106
Well, take Uber, for example, which is a startup company, which is a concept. It’s an idea, it’s some intellectual property, it’s great execution, and it’s very salable. But what do they have? They have an app. Okay, so there’s some protectability in the app but what they do have, which is the most valuable is they build brand recognition around the concept of you can get a vehicle that’s clean and tidy and friendly people come and pick you up and take you to a place with a fixed fee and then you can rate what they do. Now that’s a terrific execution. Now if I was buying that company or if I’m trying to sell Uber what am I selling? I’m selling primarily the brand. So they had to invest in brand and by not picking a generic like iTaxi, they have something to sell.