David Rosenthal: belief

Transcript context

…My other favorite structural advantage of that that I saw was somebody pointed out that if you can keep a driver busy 100% of the time between eats and the core ride sharing business, then they have less of an incentive to multihomed on other apps. If you reduce the supply on Lyft, then it's a worse user experience, et cetera. And you can start to tip the field. As we talked about another company that Bill Gurley was intimately involved in on our Rover-DogVacay episode that I saw firsthand, that is absolutely true. If you can tip unit economics in a market in favor of one competitor over the other, they will tip. I think the A-plus scenario is this capital infusion gives them the resources to continue to be able to do that. The F scenario is it just takes too long. They built for this. I think it's more likely that given an infinite timescale and dollars, they'll actually be able to do this. I think all the fundamentals hold. I think the F scenario is they're not able to access the capital that they need to. I think investors stopped signing up to put more cash in before the music stops. I think that could also happen. I don't know what happens to Uber at that point, but that's definitely the downside scenario. They can't get it done in a short enough time frame to not need to go and access new capital in a really either dilutive or company challenging way.…

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