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In Uber's case though, their costs could be very low. They push off the vast majority of liability into their not-employees (for now), and don't have any capita
by JonFish85 11y ago
In Uber's case though, their costs could be very low. They push off the vast majority of liability into their not-employees (for now), and don't have any capital expenses to speak of.
- fweespeech 11y agoYes but they only take ~20% of gross revenue.
- ankitml 11y agoPlease see if 10% is correct. As far as I know it used to be 20% in India which has been increased to 25% now.
- myth_buster 11y ago20% actually but if the costs are low and volume is high, that piece of pie would be worth a lot. Also ~20% is a much higher margin than what the retails operate on.
- fweespeech 11y agoYes I hit the wrong key and didn't notice. However, its 20% before expenses.
- pdq 11y agoUber spends a ton of money on three areas: R&D, new customer and driver acquisition (including marketing too), and legal/lobbying. These areas may taper down in growth in the future, but it's unlikely to shrink. Also there is the huge red flag they may be forced to hire the drivers as employees.
- nickff 11y agoUber is paying for these costs through the fares their drivers collect. Non-ride insurance and vehicle capital costs do not show up as a line item on Uber's cash flow statement, but the fares cover them. Uber has other capital costs though. There ain't no such thing as a free lunch.
- JonFish85 11y agoThey're not though. What percent of drivers do you think have appropriate liability insurance?