And, while the current taxi-replacement strategy isn't a business model that can justify a $17 billion valuation, there's plenty of money to be made in consolidating services in a fragmented industry. Taxicabs and limousines are about as fractured an industry as you can get. If technology can eliminate layers of excess costs (inefficient taxi and limousine services), Uber can make money in this space. It's the low-hanging fruit and provides the financial foundation for more lucrative business-to-business services.
Read MoreUber's $90k salary could disrupt the taxi business
So is Uber worth $17 billion? If they execute on their strategies, they have a shot at not being a Silicon Valley flameout and justifying its seemingly sky-high valuation. Why? They have identified a market that is real, sustainable, and profitable. They have a differentiated platform to address that need. That's the key when looking at valuations. Betting on an industry overhaul using technology to make it more efficient is where transformative opportunities lie. Uber is right there ready to grab its share of revenue as social media remakes logistics.
Commentary by Michael A. Yoshikami, the CEO and founder of Destination Wealth Management in Walnut Creek, California. He is also a CNBC contributor.