4 ms·
> That is a problem, because the moment that people have to pay the actual costs of an Uber ride, they may go back to taxis or driving their own cars. There do
by morgante 10y ago
> That is a problem, because the moment that people have to pay the actual costs of an Uber ride, they may go back to taxis or driving their own cars.
There doesn't seem to be evidence of that.
Uber is apparently profitable in its mature markets (mainly the US).[0]
The money is mostly used to prop up new markets, where you have to give lots of incentives to get both sides of the market in place fast (keeping supply and demand matched is the constant challenge of nascent two-sided marketplaces).
That being said, the fact that they're having to turn to Saudi money (nobody's preferred source) isn't encouraging.
[0] http://fortune.com/2016/02/18/uber-profitable-us/ http://fortune.com/2016/02/18/uber-profitable-us/
- alttab 10y agoI got some blood testing machines I'd love to sell you.
- nyc8821227 10y agoI laughed out loud when I read this
- toomuchtodo 10y agoWhile driving home this evening listening to NPR's Marketplace, Kai Ryssdal specifically mentioned that Forbes removed Elizabeth Holems from their list of richest self-made women. Her stake in Theranos is now valued at $0 [1]. Capitalism giveth, and capitalism taketh away. [1] https://news.fastcompany.com/elizabeth-holmess-net-worth-is-now-nothing-according-to-forbes-4008949 https://news.fastcompany.com/elizabeth-holmess-net-worth-is-...
- cft 10y agoAccording to this article her net worth is $400m. That's still a lot of money.
- toomuchtodo 10y agohttp://money.cnn.com/2016/06/01/technology/elizabeth-holmes-theranos-forbes/ http://money.cnn.com/2016/06/01/technology/elizabeth-holmes-... > Forbes said it has reexamined and revised Theranos' $9 billion valuation in light of recent investigations and allegations against the company. > Citing conversations with venture capitalists and analysts, Forbes estimates that the company is actually worth a great deal less: $800 million. That takes into account its intellectual property and financing, according to Forbes' Matthew Herper. > Holmes' 50% stake in the company would effectively be worth nothing at that valuation, Forbes concludes, because her investors would be paid back first (they hold preferred stock, not common stock like Holmes).
- hkmurakami 10y agoIt's hard to believe that she didn't take some money off the table during the frothy fundraising years of yesteryear.
- iaw 10y ago"Profitable" under non-GAAP measures maybe. Their efforts to hit actual profitability in US markets has led to a lot of driver backlash. I wouldn't trust a thing that company says about their cashflows until they are in SEC filings.
- madebylaw 10y agoUber and Lyft are paying their largest referral bonuses in the "mature" markets (major US cities, e.g. $750 in Chicago recently). They are churning and burning part-time giggers who leave after the bonus is earned or the incentive expires.
- aetherson 10y agoRecent Uber and Lyft drivers in SF have both told me that there are big incentives going out to drivers right now. I suppose it's conceivable that somehow the market is none-the-less profitable, but I don't really see how. They were saying like +$10 per ride if they hit the highest tier of payouts.
- DavidWanjiru 10y agoThe question them becomes, did Uber need to use similar subsidy tactics to become profitable in its mature markets? If yes, then this is just rinse and repeat, no problem. If no, then I'd argue there'll be trouble ahead.