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>>Sure Uber is losing gobs of money, but that's not the most important metric at this stage for them. Look at Tesla, they lost 330 million in 2017 Q1. Apples a
by enraged_camel 10y ago
>>Sure Uber is losing gobs of money, but that's not the most important metric at this stage for them. Look at Tesla, they lost 330 million in 2017 Q1.
Apples and oranges. Tesla is losing money because they are investing massive amounts of capital to improve their supply chain and production capabilities. Uber is losing money because they subsidize rides to try to push competitors out of business. Tesla is actually profitable. Uber? We don't know.
- grkhetan 10y ago"Uber is losing money because they subsidize rides to try to push competitors out of business." ?? I think thats the wrong way to phrase this. Uber is loosing money as Uber and its competitors are giving a lot of incentives to drivers to win business. All of them are loosing money.
- Tepix 10y agoI think the original statement was accurate. And it's not working. Uber will have a rough awakening.
- pyrale 10y agoIt is interesting that you and him describe essentially the same mechanism with different words. I would personally call it dumping. In effect, Uber is selling something at a lower cost than it buys, in order to acquire the market.
- rogerdonaldson 9y agoNote that all companies in the ride-sharing market are doing the same thing, not just Uber. Uber in fact looses less money than Lyft per ride.
- Grue3 10y agoUber doesn't even have competitors in many markets they expanded to. Well, save for traditional taxis.
- enraged_camel 10y agoYes, taxis and public transportation are Uber's main competitors.