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The numbers in this article are not giving a good picture of the company, at all. The revenue and operating loss and such do not really give a good idea whethe
by cleansy 9y ago
The numbers in this article are not giving a good picture of the company, at all.
The revenue and operating loss and such do not really give a good idea whether or not the company will survive in the long term. What are they spending the money on? Billions in net revenue for an app with offices all around the globe, fine. But how can you amount such losses with that plus marketing expense?
- Number of unique customers
- Rides/Cust
- CLV
- average customer lifetime
- CAC?
These would be the interesting numbers if you want to assess the company.
Disclaimer: I work in the BI space, but have no formal finance education, so I might miss a thing or two in this assessment.
- bduerst 9y agoIn those terms: With the ride subsidies, it's likely that current CAC is higher than CLV. Since there isn't much customer or driver loyalty, the customer lifetime doesn't matter since raising prices will likely lose customers. You're not going to get a company sharing many of these specific metrics because they're competitive secrets.
- jcdavis 9y agoJust a guess, but from what I understand they spend significant $$ on driver-side acquisition and retention, perhaps even moreso than customer side. In addition to the signing/referral bonuses, they have regular weekly bonuses for hitting a certain number of rides.
- pfarnsworth 9y agolol it doesn't take a finance degree to posit that losing 1.5B in a quarter is pretty bad, if not historically bad for a non-public company.