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Can you explain further what was wrong with the calculation? This number is widely reported and yours is the first refutation I've seen.

• harryh 10y ago
  The number was determined by looking at gross revenues (which is just Uber's cut of rides not the total that customers pay) and comparing it to corporate expenses (which is not the same thing as what it costs to deliver the rides). It's an almost non sensical calculation. The fact that it has been widely reported is a sad statement on the innumeracy of journalism.
  • randyrand 10y ago
    ^ to reiterate. This is a bit arbitrary since investor capital is not actually used this way, but the numbers would be: - 41% of Uber's corporate expenses are paid for by the customer, 59% by investors - 100% of non-corporate costs (driver, car, fuel, maintenance, etc) are paid for by the customer and 0% by investors. But this instead somehow got interpreted as "the customer only pays for 41% of the ride cost". Which is completely false.
    • harryh 10y ago
      That is an excellent explanation. Thank you. I will add that I suspect that some corporate expenses are going to the driver in the form of bonuses or minimum per hour earnings (Uber has had a lot incentive programs for drivers). This, kinda, goes to the cost of a ride. I have no idea how much money this is overall. A lot maybe.