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Uber, Lyft, Airbnb, etc. all typically report 'Gross Revenue' which is pretty misleading since the majority of Gross Revenue is passed through to the driver / a
by mikeyouse 11y ago
Uber, Lyft, Airbnb, etc. all typically report 'Gross Revenue' which is pretty misleading since the majority of Gross Revenue is passed through to the driver / apartment owner -- That may be what that sentence is in reference to. The interesting number is 'Net Revenue' which is how much Uber actually receives to pay their bills, etc.
Quick example, if 10 riders take an Uber and their cost is $20/each, Uber would report $200 in Gross Revenue. Since their driver split is something like 80/20, their Net Revenue would only be $40.
- SeeDave 11y agoFrom my limited understanding, I believe Groupon tried something similar and was shut down by the SEC during IPO.