Uber will be profitable within three years - CEO

Wow, didnt know they were making a loss, especially considering they just provide the platform.
 
Ecco said:
Wow, didnt know they were making a loss, especially considering they just provide the platform.
Click to expand...

VC funding + heavily subsidised ride fares...

A lot of artificial growth from this marketshare grab, typical for Silicon Valley VC giants.
 
Waylander said:
VC funding + heavily subsidised ride fares...

A lot of artificial growth from this marketshare grab, typical for Silicon Valley VC giants.
Click to expand...

Are fares in SA subsidized?
 
If the driver buys his own car as in South Africa the how can UBER make a loss.
The driver pays for fuel insurance maintenance etc.
Uber just takes a cut or am I missing something.
Maybe the model is different overseas.
 
Fuzzbox said:
If the driver buys his own car as in South Africa the how can UBER make a loss.
The driver pays for fuel insurance maintenance etc.
Uber just takes a cut or am I missing something.
Maybe the model is different overseas.
Click to expand...

% Uber would have taken is subsidised to nearly nothing and a portion is added to driver's cut to keep drivers happy. Essentially Uber is dropping their margins to nearly nothing to get lots of drivers and riders on their service, away from Lyft/Taxify etc
 
Fuzzbox said:
If the driver buys his own car as in South Africa the how can UBER make a loss.
The driver pays for fuel insurance maintenance etc.
Uber just takes a cut or am I missing something.
Maybe the model is different overseas.
Click to expand...

My guess is the cost of running the company is not taken into account. So what you pay covers the drivers time, the drivers petrol and give a cut to Uber, but that cut is not big enough to cover the expenses of payroll, server hosting, office space etc. Those costs are covered by VC money. So for every $1 Uber make in a trip, they have to pay $2 to keep the business running.
 
Which means Uber's revenue is vokol, while their costs to market/handle their hundreds of lawsuits and do recon on their competitors is only going up.

I'd argue Uber spends more on market intelligence than anything else.
 
I have a few friends that are Uber drivers and I think UBER takes 25%.
No Risk to Uber.
I dont think their back office cost can be that high.
 
Last edited:
Fuzzbox said:
I have a few friends that are Uber drivers and I think UBER takes 25%.
No Risk to Uber.
I dont think their back office cost can be that high.
Click to expand...

Uber’s disclosure revealed that gross bookings, its key metric for demand of ride services, grew 11% to $9.71 billion during the period that ended in September. That’s up from gross bookings of $8.74 billion in Q2 of 2017, said Bloomberg. Net revenue rose 21% to $2.01 billion in the third quarter, while net losses increased 38% from $1.06 billion in the prior period.
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http://fortune.com/2017/11/29/uber-financials-loss-softbank/
 
End 2017

Gross bookings: $9.705 billion versus $8.741 billion last quarter (up 11%).
Net revenue: $2.013 billion versus $1.658 billion last quarter (up 21%).
Net income: -$1.462 billion versus -$1.064 billion last quarter.
Total assets (including cash, cash equivalents, investments, and more): $15.64 billion versus $15.708 billion a year ago.
Click to expand...

http://www.businessinsider.com/uber-q3-financials-leak-wsj-2017-12
 
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