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I don't know but Uber has proven to be a shinny example of a ponzy scheme within a larger ponzy scheme. They will never be profitable, Burning billions, so is t

by ijafri 9y ago

I don't know but Uber has proven to be a shinny example of a ponzy scheme within a larger ponzy scheme. They will never be profitable, Burning billions, so is the case with Careem whom I met, and their staff was at loss to tell how this is a viable business to run. They disrupted taxi drivers, making good earnings. They benefited a lot to consumers eliminating overcharging by common taxi drivers. But as an entrepreneur I am still failing to understand how far they can go before they run out of fuel $ eventually.

valuearb 9y ago
Hard to imagine how they won't be profitable. The cost of providing the service is pennies and they get dollars per transaction.
- AlexandrB 9y ago
  But then shouldn't they be profitable already? How are they losing multiple billions per year if they're profitable per unit. If the answer is they need to raise prices and/or reduce the drivers' cut, how will they be better than the taxi services they're replacing? Many taxi services up here in Canada already have apps that are close to on par with what Uber offers.
- ijafri 9y ago
  i don't know how did you reach the conclusion of costs amounting to 'pennies', they are a taxi service without owning or leasing a taxi (generally) and without investing into depreciating assets, does not make the costs 'pennies' even worse, their one time investment might not be higher but monthly operational and running expenses are far more therefore, who hires taxi drivers, and it's almost costing them more than they pay to taxi 'partners' and all other costs involved, hence the massive losses, have you got a car? go to their office, and 'recruit' yourself and do the math. pssst!! it's not a 'angelic ride sharing' service period. it's hiring taxi drivers and in this case mostly entrepreneurial taxi drivers having multiple cars and running it as a business.
- late2part 9y ago
  And yet, they're losing billions. Those Cassandra servers don't run themselves...

by ijafri 9y ago

valuearb 9y ago

Hard to imagine how they won't be profitable. The cost of providing the service is pennies and they get dollars per transaction.

AlexandrB 9y ago
But then shouldn't they be profitable already? How are they losing multiple billions per year if they're profitable per unit. If the answer is they need to raise prices and/or reduce the drivers' cut, how will they be better than the taxi services they're replacing? Many taxi services up here in Canada already have apps that are close to on par with what Uber offers.
ijafri 9y ago
i don't know how did you reach the conclusion of costs amounting to 'pennies', they are a taxi service without owning or leasing a taxi (generally) and without investing into depreciating assets, does not make the costs 'pennies' even worse, their one time investment might not be higher but monthly operational and running expenses are far more therefore, who hires taxi drivers, and it's almost costing them more than they pay to taxi 'partners' and all other costs involved, hence the massive losses, have you got a car? go to their office, and 'recruit' yourself and do the math. pssst!! it's not a 'angelic ride sharing' service period. it's hiring taxi drivers and in this case mostly entrepreneurial taxi drivers having multiple cars and running it as a business.
late2part 9y ago
And yet, they're losing billions. Those Cassandra servers don't run themselves...