4 ms·
Uber would only need to raise fares 10% and not increase driver payouts to be in the black. The dire predictions don’t seem connected to the balance sheet I’ve
by encoderer 9y ago
Uber would only need to raise fares 10% and not increase driver payouts to be in the black. The dire predictions don’t seem connected to the balance sheet I’ve looked at. Everybody wags their tongue at uber quarterly “loss” but they pay no attention to the more important measure of free cash flow
- Retric 9y agoBreak even does not enable them to pay for massive investments. A 20% increase would cost them significant ridership, but is more or less required to have any significant profit.
- nrhk 9y agoThey would finance it through debt and equity, do it post IPO etc. There could be a merger instead of an acquisition. Currently if they cut their R&D by a bit and raise prices by 10% their more than healthy enough.
- Retric 9y agoIf they only raise prices by 10% it will cost them rides and drivers to Lyft / taxi etc. It's hard to say how much market share this would cost them, but you can't assume their numbers are going to be static with a price increase or they would have already increased prices.
- wils1245 9y ago10% is plenty to drive business to Lyft, especially with Lyft’s better brand.