(#95) Uber has a new target; Google’s dominance in search is ending
Pinterest is having its AI moment
Today’s Insights:
Uber has a new target: Amazon
Pinterest is having its AI moment
🔑 Meetings ≠ Strategy
From the PLUS version (paid):
Google’s dominance in the search market is slowly coming to an end
Microsoft rethinks its AI strategy
Will AI bring deflation?
Strategy (Air)
Uber has a new target: Amazon
Why? Well, at least three reasons:
1/ Uber is transitioning from Ride-Sharing to a Multi-Service Platform. The company is no longer solely focused on its ride-hailing origins. It has expanded into multiple sectors, including delivery services with Uber Eats and Uber Direct, which delivers goods for major retailers like Walmart and Sephora. This diversification is part of CEO Dara Khosrowshahi’s vision for Uber to become the "operating system for everyday life," with an emphasis on local commerce and logistics, positioning it as a competitor to Amazon in the delivery space.
2/ As a result, Uber is targeting a "Super App" model. Their ambition is to create a "super app," similar to China’s WeChat, integrating transportation, delivery, and other services into a single platform. However, instead of merging all functionalities into one app, Uber operates three distinct apps—Uber, Uber Eats, and Uber Driver. While this strategy allows Uber to target different user segments more effectively, analysts question whether the Western market, which already has many specialized apps, will embrace this model as readily as Asian markets.
3/ Finally, Uber’s plan to challenge Amazon in local commerce faces significant obstacles. Although Uber’s platform allows retailers to offer rapid delivery without Amazon's vast logistics infrastructure, analysts and investors doubt whether consumers will consistently pay for ultra-fast delivery, especially for non-perishable goods. Moreover, Amazon’s dominance, supported by over 200 million Prime members, offers a strong incentive for consumers to stick with its services for convenience and cost-effectiveness. LINK
Pinterest is having its AI moment
Why? I think for these 3 reasons:
1/ Pinterest is leveraging artificial intelligence to enhance its ad-targeting capabilities. This aligns with the broader trend of companies using AI to personalize experiences, which has huge potential for revenue growth. AI tools are helping Pinterest better monetize its user base, a critical area that was previously underdeveloped. This positions Pinterest to catch up with competitors like Meta, attracting Wall Street's interest.
2/ The partnership with Amazon, announced in August, is seen as a major growth driver. This collaboration allows Pinterest to tap into Amazon's e-commerce and advertising infrastructure, making the platform more valuable for advertisers. As advertising efficiency improves, revenue opportunities multiply, positioning Pinterest as an attractive investment at a relatively low cost.
3/ Finally, after a turbulent summer and subsequent share-price slump, Pinterest is trading at a relatively lower valuation compared to its historical averages and peers like Snap. Analysts are optimistic about the company's recovery potential, with a consensus price target suggesting a 30% upside over the next 12 months. This combination of growth potential and lower price multiples makes Pinterest a promising investment for those willing to bet on its long-term strategy (NB! Not investment advice). LINK
🔑 Meetings ≠ Strategy
📉 "I don’t get it. We had all those meetings." 😅
It's funny how often "meetings" get mistaken for "strategy." We brainstorm, create slides, and hold endless discussions... but then wonder why our results look like a downhill slope.
Strategy is about making clear, bold choices. It’s about understanding what really drives your business and how to win. More meetings might mean more alignment, but without decisive actions and insights, they're just calendar fillers.
So, the next time you see a chart heading south, ask yourself: are we just
having meetings, or are we making real strategic moves?
Artificial Intelligence
Do you remember Rabbit one?
Here are 3 insights from the CEO Jesse Lyu with Nilay Patel, editor-in-chief of The Verge:
1/ Rabbit's ability to move quickly with a small team and limited funding has positioned it as an agile player in the AI space. While other major tech companies raise billions, Rabbit has built its r1 device and launched its Large Action Model (LAM) with around $50 million. This lean operation allows Rabbit to deliver unique features quickly, such as LAM Playground, which differentiates it from larger, slower-moving competitors. The Verge rated their product with a 3…out of 10.
2/ Rabbit’s decision to bypass traditional APIs by creating an agent that automates actions on websites without official integrations sets it apart. While this approach circumvents the need for negotiations with big companies like Spotify or Uber, it introduces potential legal risks. However, Lyu sees this as a temporary hurdle that will eventually lead to negotiations with these companies once Rabbit gains more traction, positioning the company for future partnerships.
3/ Despite the technical brilliance of Rabbit’s AI, Lyu is pragmatic about competition from giants like Apple and OpenAI. He acknowledges that big players have vast resources but emphasizes Rabbit's focus on its core users and incremental improvements. This customer-centric approach, combined with a fast iteration cycle and a vision to democratize AI agents, gives Rabbit a unique edge despite its relatively small size. LINK
[Video] Y Combinator: “Why Vertical LLM Agents Are The New $1 Billion SaaS Opportunities”. LINK
Meta announces Movie Gen, an AI-powered video generator
Meta has launched Movie Gen to empower content creators and filmmakers with cutting-edge AI tools that simplify and enhance the creative process. Here are two key reasons for the launch:
1/ Meta Movie Gen provides a suite of AI-enabled tools that allow users to create high-quality videos, personalized content, and audio with just text inputs. This makes advanced media creation accessible to a broader audience, from amateur creators to professional filmmakers, fostering creativity without requiring specialized technical skills, hence people spending more time on their platforms.
2/ Meta is positioning itself as a leader in generative AI by combining advanced video, image, and audio generation into a single platform. This product is part of Meta’s broader strategy to offer innovative tools for content creation, ensuring it remains at the forefront of AI developments in the media space while fostering new opportunities for creators to engage with their audiences. The best way to convince smart people to join your company is to provide them with resources and great projects to work on. After all, you cannot really change the world by selling ads. LINK
Things Happen
[Video] How to think about risk with Howard Marks from Oaktree Capital. LINK
Financial Times: “US funding drives investment for European military tech start-ups”. LINK
BBC and other public UK broadcasters strike Amazon streaming service deal. LINK
The swine fever is threatening Italy’s national treasury: prosciutto. LINK
Microsoft gives Copilot a voice and vision. LINK
Industry reports
Card payments are in decline across Europe’s main markets. So many interesting insights. LINK
Tech dominates the Most Admired Employer ranking, showcasing Silicon Valley's powerful aspirational influence. LINK
Curiosity corner
[Video] The business of football: the big data arms race. LINK
An investor is bringing to market the destroyed Malibu house of Kanye West. LINK\
Distribution of Roman Coins Found. LINK
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