Want to get rich quick? Best to take a hard look at that device in your hand. This has important ramifications for marketers as well.
There’s a headline on the front page of the New York Times business section today – ‘How Uber Pulls in Billions, All Via IPhone’. The primary point of the article is that the current $18.2 billion dollar valuation of Uber isn’t as crazy as it might seem. Here’s how Andrew Sorkin does the math: In just the U.S., the taxi business generates $11 billion annually. The Financial Times says the average person spends $238 a year on taxis in major cities. ‘If you extrapolate that Uber could one day control a quarter of the current global taxi market, the investment would turn out to be a home run.’
So, the valuation that some have called insane and surely the most visible sign of another tech bubble may in fact be quite reasonable. Smart, in fact. Only time will tell. Of course this follows on the heels of Facebook’s purchase of WhatsApp for $16 billion – and yes, that’s another mobile app. Seeing a pattern here yet?
Investors have decided that mobile is where to find the potential to make the most money right now, and they’re backing up that opinion with cash. Lots and lots of it.
In case you’re not using it, Airbnb has a feature on its mobile app that lets you find places to stay that are available for the coming weekend. ‘Instantly bookable’, and of course right from your phone. Airbnb is also currently valued at over $10 billion.
The most profitable new business ideas live on mobile phones. Because people live on them, too. Millennials have grown up with this technology, so it’s only natural that they rely on it more than others.
Leading edge mobile marketers are looking hard for new ways to connect with this target. They have to – the banner ad just doesn’t work there. Whoever does is going to make a lot of money as well.