Denny’s Daily Zinger: 2 Online Upstarts Threaten 2 Entrenched Industries With Big Time Blowback

The two online upstarts are: The brainchild of Los Angeles Entrepreneur, Travis Kalanick, Uber connects people who need rides with folks who want to turn their automobiles into moneymakers.

You’re standing in the rain watching full taxicabs whiz by in any of 131 cities in 36 countries. You can use the Uber app on your smartphone to call for a driver and track the car’s progress until it pulls up next to you.

The system has caught on. On June 6, 2014 the company was valued at $18 billion.

However, the taxi and limo industry—all heavily regulated worldwide—are going ballistic. All over Europe angry cabbies protested by staging strikes and horrific traffic snarls. Homeowners and apartment dwellers in 33,000 cities in 190 countries have turned spare rooms into guest quarters for travelers who want to save a buck.

Founded by Nathan Blecharczyk, Brian Chesky
 and Joe Gebbia—all in their early 30s, Airbnb is valued at $10 billion.

But like Uber, the four-year-old company is getting into serious legal blowback from the heavily regulated, taxed and well-funded hotel industry and the regulators (e.g., attorneys general).

Takeaways to Consider

  • If you plan on circumventing industries that are booming, you need deep pockets and a cast iron stomach.
  • On June 25, 2014 the Supreme Court shot down the business model for violation of copyright. A chance exists these newly-minted and billionaires might also someday be worth bupkis.

Denny Hatch‘s new book is “Write Everything Right!” Pat Friesen writes, “This book is guaranteed to help you fine-tune your writing skills, whatever you write. Denny’s wit and craftsmanship as an experienced writer/author shine through on every page.” Click here to download (opens as a PDF) and read the first three chapters FREE. The title is also available on Kindle. Reach Denny at

Denny Hatch is the author of six books on marketing and four novels, and is a direct marketing writer, designer and consultant. His latest book is “Write Everything Right!” Visit him at

Related Content
  • Reginald Doherty

    To me, this is like using Craig’s List. Caveat Emptor! You know nothing about the offering parties, let alone the buyers. How do you do you do due diligence when waiting for a cab? Or background of person offering a room? Both not for me, thank you.

  • Meg Nugent Hodges

    Uber in particular has some kinks to work out. Heaven forbid you own an SUV and live in places like NYC or SF and pull up to a curb anywhere….strangers will try and join you thinking you are an Uber driver.

    Drivers and riders alike face potential safety risks from impostors on either side of the transaction that wish to cause harm. Perhaps it’s yet another “right time and place” proposition.