On: Value of one of S.F.'s biggest buildings plunges b...

[TheSpiceIsLife]

What makes Uber capital intensive?

I would have thought something like a steel mill would be capital intensive, Uber less so.

[karagenit → TheSpiceIsLife]

Arguably because it’s a two sided marketplace (matching drivers to riders) the network effect is very strong, so to have any success you have to dump a ton of money into marketing to gain enough users to make the app viable.

[bcherny → karagenit]

My understanding is it's this, then having to repeat it over and over for each city (network effects are within a city, mostly).

[Cacti → TheSpiceIsLife]

Because they’re burning money.