Being Business Minded Part 1

One of the fastest growing businesses in the world today is a company called Uber. For those who do not know what Uber is; it is essentially a Mobile App (a computer program, using a cell phone), which makes it possible for you to call a "taxi". Uber does not own any taxis or cars of its own. The App sends a message (similar to an SMS), to the nearest registered but independent Uber driver, within your vicinity. The car will usually arrive at your location, within 5 minutes.
Whilst using one of these services, the owner of the car, proudly told me that he was making a lot of money, as the service brings him customers. Uber take a commission, and also do the billing. All he has to do is turn up. Then the driver, added this:
"Uber has no assets, just some computer servers."
Seeing that he was a smart entrepreneur, I then engaged him in a wider conversation, about business:
I asked him so many questions, that he finally asked me, "are you planning to set up a similar business, in Africa?"
"Not really.... I'm just "BUSINESS MINDED"; I make it my business, to see the business side of any business."
I then surprised him by telling him what I already knew about Uber. For instance I told him, that Uber, is now valued at more than $40bn.
They are more valuable than Anglo American, which is one of the largest mining companies in the world. Imagine, a taxi hailing service, is more valuable than Anglo which has been around for more than 100 years, employs tens of thousands of people, and controls some of the largest deposits of diamonds, platinum, iron ore, and coal; in the whole world.
"Do you think that is fair?" The Uber driver asked. "How can a company with no assets, be worth more than a mining company that owns De Beers Diamonds, or Anglo Platinum?!"
Uber has no assets. They do not even own the cell phone network, on which their services operate.
"Who would have imagined that someone can come along, and change a service as simple as getting a taxi?"
$40bn.
As we neared the end of my journey, I suddenly asked my driver, who incidentally was an African from Ethiopian:
"How does Facebook and Twitter make money?"
"Through advertising", he shot back.
"What does that mean?" I asked laughing.
"Not really sure, sir."
I laughed some more, and as I got out of his car, I was still laughing.
He looked bewildered, by my response. Sadly I did not have a chance, to explain to him, why I was laughing. He rushed to his next Uber client, I went my way... Still laughing.




I will never forget the first time we had to deal with Blackberry, when they produced their phone for the first time.
"Our business model is quite simple", the sales executive said, to us:
"We charge you, $20/customer, per month. And you can charge on top, whatever you want."
My Chief Marketing Officer, who was dealing with them, was livid:
"That is ridiculous! We have invested billions of dollars to build the network, and to get customers. Now you waltz in here, and tell us, that you will get the lions share of the revenue on each customer? How can anyone accept such an arrangement?"
The Blackberry guy, smiled, and said quietly, "its a take it or leave it."
The matter, was escalated up to me, as Chairman. I listened quietly to our senior executives, express their frustrations,and indignation:




"That means, we will only get about $5, whilst they take $20; is that fair?!"
"Why, why can't they just sell us phones, like everyone else. Why do they want a revenue share, as though they are the operator?!"

"Do it, and do it now." I said quietly.
Then I explained:
"They have the upper hand. They know that they have an iconic product, which our top customers will want. If we do not sign, they can do serious damage to our business by handing this opportunity to a competitor. This game is no longer about building networks, its the guys who can use our networks, for their own businesses, that will be king from now on. We better learn to do the same, or at least work with them."
The position of Blackberry, would remain unchallenged until someone came along with a better product, and that was Apple. They were even more aggressive, about what they wanted. There was no debate, we all understood, by then.
Today, Apple is worth more than $600bn, making it the most valuable company in history; yes more valuable than any oil company, or mining conglomerate or cell phone company.

Being "business minded", requires you to understand, what I call "changing dispensations", when they occur. If you do not understand why Alibaba, an "online flea market", is worth more than any cell phone company, or any mining company, you will not be able to play the business game.
Now, think about Uber, and learn, to be business minded.