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Simple - autonomous vehicles. It's the single largest line item of COGS. Reduce a COGS line by let's say 25% for revenues of $10B and you all of the sudden have
by mbesto 9y ago
Simple - autonomous vehicles. It's the single largest line item of COGS. Reduce a COGS line by let's say 25% for revenues of $10B and you all of the sudden have another $2.5B in extra profit.
EDIT - I totally simplified that math (and it reads odd as stated), but you get the point.
- NHCOCAMA 9y agoAutonomous is has need been the answer to me. It has always seemed like a way to raise more money using the latest fad. With autonomous you have massive up front capital costs and then you have to hire staff to service the cars. Also, city and state regulators are not even close to allowing massive fleets loose on the roadways. Uber will need 5+ years of burn or positive cash flow before they can even begin to rely on autonomous cars and that is only in easy to navigate dense cities of the world.