> A common comparison to describe Uber’s approach is Amazon, which lost money consistently over the first several years of its existence. As Horan notes, howeve

> A common comparison to describe Uber’s approach is Amazon, which lost money consistently over the first several years of its existence. As Horan notes, however, Amazon’s “worst losses were $1.4 billion in its fifth year of operations, but shrank rapidly thereafter, while Uber’s losses have been steadily growing and will be over $3 billion in its seventh year.” Some key differences between Uber and Amazon: 1. Amazon's loss in 2000 was $1.4B[0] on $2.7B of revenue[1]. Uber this financial year will lose ~$2.6B on $5.5B of revenue - so they're doing a little better 2. Uber's revenue is growing at more than 100% p.a while Amazon was growing at 15% p.a at that time 3. Amazon had to cut back spending to survive while Uber has $10B in the bank and ready sources of cheap additional capital if it requires it 4. Uber is growing much, much faster internationally than Amazon ever did. Amazon even today is only 15 countries while Uber is already at 81 - so they are growing more in a shorter space of time. 5. Uber's margins will eventually be a lot larger than Amazon's - there is potential there for a greater net profit margin and greater multiple. It's reported that the core business will only lose $100M this year in North America and should turn to profitable next fy. 6. In almost every metric Uber is beating Amazon at a similar stage - revenue, revenue growth, etc. 7. Uber has the benefit of remaining private for longer, no burst dotcom bubble, economic downturn or fundraising problems and founder control The comparison is definitely appropriate, tho - similar loss-leading strategies to build market share with products that don't necessarily enforce natural monopolies. You need to outspend and drive down your competition in the near-term to win the long-term. There are very few markets where Uber has lost or is losing and their model seems easier to adapt internationally than Amazon's. [0] http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Net_Income/2000 http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Net_In... [1] http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Revenue/2000 http://www.wikinvest.com/stock/Amazon.com_(AMZN)/Data/Revenu...