4 ms·
The nakedcapitalism post that started the 41% myth actually has enough info to calculate the real number, at least for 1H2015 (http://www.nakedcapitalism.com/20
by apsec112 10y ago
The nakedcapitalism post that started the 41% myth actually has enough info to calculate the real number, at least for 1H2015 (http://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver-part-one-understanding-ubers-bleak-operating-economics.html http://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver...)
Farebox ratio = fares / total cost of operations
Total cost of operations = fares - profits
Farebox ratio = fares / (fares - profits)
For 1H2015:
Farebox ratio = 3,661 / (3,661 - -987) = 3661 / 4648 = 78.8%
- harryh 10y agoThat is a somewhat reasonable answer. The reason that I don't consider it exactly correct is that the original claim was: "Uber passengers were paying only 41% of the actual cost of their trips." What you have calculated is that Uber passengers paid 78.8% of the cost of operating the company in 1H2015. The cost of operating the company isn't the same thing as the cost of all their trips. The company does a lot more than provide trips.