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Uber trumpets it and crows when they come close to profitability in markets. You're nuts if you think that Uber is profitable in North America. There is clear
by aetherson 9y ago
Uber trumpets it and crows when they come close to profitability in markets. You're nuts if you think that Uber is profitable in North America.
There is clearly some profitable ride-sharing business in the general Uber model, but it remains unclear that there is a profitable ride-sharing business with enough gross revenue to justify a 10x unicorn business. Uber's main problems with profit margins aren't Uber Eats or even driverless cars, it's in getting their ride volumes up.
- valuearb 9y agoI never said their valuation is justified, just that their business model works. The costs of providing their booking service is small compared to the revenues it generates. The only question is how much do they have to spend on end user marketing and driver recruitment.
- alphaalpha101 9y agoTheir business model isn't just the cost of booking, because they aren't a booking company. They're a taxi company. The cost of doing business involves running taxis. And that is not profitable for them.