in ##ly , David Sacks claims that Geographic saturation is the key network to effects and profitability in the ride sharing business . The article elaborates on David 's point seeing if Uber can dominate . It 's strength however is in its logistics buisness and not its freight - hailing services . ' The first order analysis of why this matters is obvious : Logistics is 12 percent of global GDP , so the parcel business represents a huge new revenue stream for Uber . The second order analysis is perhaps more interesting : Parcels and parcel can cross subsidize each other , so by co - existing , the two services are cheaper than either could be alone . Parcel delivery services will become a powerful lever for Uber in its rivalry with Lyft . "
Internet entrepreneur, David Sacks claims that Geographic saturation is the key network to effects and profitability in the ride sharing business. The article elaborates on David's point seeing if Uber can dominate. It's strength however is in its logistics buisness and not its taxi-hailing services. 'The first order analysis of why this matters is obvious: Logistics is 12 percent of global GDP, so the parcel business represents a huge new revenue stream for Uber. The second order analysis is perhaps more interesting: Parcels and people can cross subsidize each other, so by co-existing, the two services are cheaper than either could be alone. Parcel delivery services will become a powerful lever for Uber in its rivalry with Lyft."