Key Takeaways

  • The "innovator's dilemma" isn't abstract; it's when your big success "swallows up your organizational capacity to do anything else," as Uber's President and COO Andrew Macdonald notes.
  • Uber carves out dedicated teams, like 100 to 150 people from a 2,000-person mobility unit, to exclusively work on “the new stuff, the small stuff, the stuff that we don't have product market fit.”
  • New ventures operate on a “weeks, not months or quarters” cadence, taking inspiration from Revolut's frequent check-ins and rapid iteration.
  • These teams must “sing for their supper,” continually proving progress for further funding rather than relying on deep corporate pockets, even with vast internal resources.
  • This structured approach to combating complacency and fostering new ideas is formalized in Uber's 'Growth Bets' Program for New Business Incubation.

The Uber's 'Growth Bets' Program for New Business Incubation (Inspired by Revolut)

This method allows large companies to combat the innovator's dilemma by fostering a startup-like environment for new ventures, enabling them to scale rapidly by leveraging the parent company's existing distribution network.

  • Dedicated Resources: Create dedicated resources by carving out a percentage of existing staff (e.g., 100-150 out of 2,000 people) to work exclusively on 'the new stuff, the small stuff, the stuff that we don't have product market fit or unit economics figured out, but that could be a big future business.' This requires 'dedicated capacity and thinking' rather than trying to incubate new things as a small percentage of an existing job.
  • Rapid Cadence and Accountability: Operate on a rapid cadence, 'on weeks, not months or quarters,' for new businesses. This involves frequent check-ins (e.g., weekly 20-minute sessions with leaders) and requiring teams to 'sing for your supper' by continually proving progress and asking for further funding rounds.
  • Leverage Distribution Advantage: Once an interesting product is built, plug it into existing large distribution channels (e.g., Uber's 200 million monthly consumers) to scale significantly faster than independent startups. However, this requires careful internal decisions on 'how we spend our pixels' and allocate internal marketing/engineering support.

When This Works (and When It Doesn't)

This method works for large companies needing to overcome the innovator's dilemma by fostering a startup-like environment for new ventures, preventing them from being 'swallowed up by the whole' and enabling them to scale rapidly by leveraging the parent company's existing distribution network. It excels when a company has established, wide-reaching distribution that new products can eventually tap into. However, it breaks down if leadership isn't truly committed to empowering these dedicated teams with genuine autonomy and distinct budgets; simply labeling a side project a "growth bet" won't cut it. It also struggles if the core business isn't stable enough to allocate significant resources, or if the distribution advantage is irrelevant to the new venture's target market.

What to Do With This

If you're running a successful business with an existing customer base and a growing revenue stream, but you see a speculative adjacent market opportunity, don't just add it to someone's existing to-do list. This week, pick one high-potential, unproven idea. Carve out a dedicated 2-person team—even if it's just for a month—whose sole job is to validate it. Schedule daily 15-minute stand-ups and a strict 30-minute weekly demo where they present their findings to you and key stakeholders. Make them earn the next sprint's budget with clear, measurable progress against hypotheses, then, if it gains traction, plan how you'll introduce it to your existing customer base through your current marketing channels.