Uber’s entire business model is predicated on challenging obsolete laws meant to protect entrenched interests and frustrate innovation rather than benefit consumers. The whole notion of taxi medallions and fixed pricing, for example, constricts supply and keeps prices high—both negatives for riders.
if there had been no iPhone there would have been no Uber.
scrappy
swung for the fences
scorched-earth tactics
The company, then named UberCab
Uber’s “math department,” as he called it, included a computational statistician, a rocket scientist, and a nuclear physicist. They were running, he informed me, a Gaussian process emulation—a fancy statistical model—to improve on data available from Google’s mapping products.
joined an elite group of corporate names that double as verbs: No need to drive to the event, I’ll just Uber there.
For Kalanick, Uber also was the culmination of his experiences to date as an entrepreneur, the sum total of his failures and successes—plus the usual right-time/right-place luck.
VCs can consider their funds fantastic successes if one in ten of their investments pays off.
turn scrappiness, moxie, and smarts into vast fortunes.
The center of gravity for computer science is 350 miles north, in Silicon Valley, its epicenter on the campus of Stanford University in Palo Alto.
The world’s leading venture capitalists, investors who make risky bets on unproven technology companies, nearly all had their offices on Sand Hill Road in Menlo Park, minutes from the Stanford campus. The proximity was no coincidence: the financiers recognized the value of staying close
ARPANET. From that first transmission between two “nodes” on the network—the receiving node, as it happened, was at Stanford—the Internet was born.
we were proxying like twenty megabits a second of traffic. Back then, that much bandwidth would cost you like twenty thousand dollars a month to buy.”
“I was doing the deal and learning all the things that in Silicon Valley are standardized now,” says Kalanick, who had neither a background in deal making nor mentors to turn to for advice. “We have blog posts now about all that stuff, about how term sheets work, for example. But at the time, nobody knew shit. It was all tribal knowledge. There was no source of information on venture deals.
would invest $4 million for a controlling, 51 percent stake in Scour. The young company would move into the same building in Beverly Hills as Checkout.com. The deal was supposed to close within a month, during which time the Scour side was not allowed to solicit a better deal, known as a “no-shop” clause.
Says Kalanick: “You’re watching your work, your stuff being auctioned off in a bankruptcy court.
When Kalanick wasn’t playing sports, he was working. He scooped ice cream at Baskin-Robbins and made copies at Kinko’s. He had a job conducting telephone surveys.
degrees in two majors. A combined computer science and electrical engineering was one. Business economics was the other.
part-time job was the SAT prep class he helped start near his parents’ home
Facilitating the movement of large files was already a big business
Kalanick was frugal as well, sometimes in eccentric ways. He rode an old motorcycle to work, in all kinds of weather. Says Fabbrocino: “We all thought he was crazy. Sometimes he would show up for work drenched from the rain. I respected that.”
The more excited he got about it the faster he talked about it.