Fantastic business that I would not mind experiencing at some point in my life. I think that this is a really hard business to get right given the logistical nightmares, capital to buy planes, training of staff, etc. and, from what I read, these guys are best-in-class.
In your opinion, if Net Jets could wave a magic wand and grow only one part of their business as fast as they want, would it be the fractional ownership or leasing part? I haven’t done much homework and don’t know the answer, but I would imagine that the fractional ownership part of the company is a bigger part of the business when the economy is doing well, but the leasing part of the business is what sustains the company during a downturn.
Great concept by UBER, but so far poor execution in my book! I have taken UBER Pool a few times, mostly because I was hoping to get a cheaper, fixed fare and have no one else jump in my car. It worked once, but the last two times I have been paired with other people while coming home from South Station. I am not sure why this happened, but I was scheduled to get dropped off last (I was the furthest away from the pick up location), but the girl who got dropped off a considerable distance before me was charged the same rate that I was. Even though it was still cheaper than getting her own ride, (in my opinion) she should not have to pay the same amount as what I was asked to pay.
While reading your post, I had the thought that, while I still believe this is a great concept, it seems like UBER’s operating model still has some catching up to do with their business model.
Nice job outlining the business / operating models! The graphics also really helped me visualize each point you discussed.
I was a loyal ALDI customer when I lived in London and was on a tight budget and I remember that I was happy to buy cereals, bread, eggs and milk at ALDI, but was hesitant to buy higher priced items like meats. I would be curious if you came across anything that broke down the percent of sales by product type to see how they compare to more traditional grocers.
Similar to Heather, I wonder how this specific business model will translate into the U.S. Tesco tried to launch a chain of grocery stores here under the Fresh & Easy name, but their business / operating models did not translate well and Tesco subsequently shut down the operation.