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I'm guessing those are "Gross" vs "Net", or "Revenue" vs "Profit", depending on how you define your terms.
by GauntletWizard 11y ago
I'm guessing those are "Gross" vs "Net", or "Revenue" vs "Profit", depending on how you define your terms.
- brohee 11y agoSo do I, but this is extremely sloppy writing. Profit is talked about a bit later in the article, there is likely none. I find it all very ironic with "financial mistatement" being on the front page.
- rajivtiru 11y agoDefinitely not $2B "Profit" since they would have to subtract all other overhead costs like salaries etc. I think the article mentions that actual profit might be negative.
- GauntletWizard 11y agoA business can report one business unit (The bit that hires drivers and sends them out) is 'profitable', and also have an overall in-the-red because other business units aren't. I've not read the presentation, but it may be that Uber is trying to show their engineering costs and operations costs as two business units to better represent how the business scales (Engineering costs go up only logarithmically, while operations go 1:1 with revenue).
- pbreit 11y agoIf Uber normalized its growth investing, it would continue to grow and be radically profitable.
- bpicolo 11y agoI'm pretty sure that's money paid by users (i.e., 80% which goes to drivers) then 20% to uber