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> which means it requires much less capital They burned through billions of dollars of capital. That's quite a lot for a business that requires very little cap
by dragandj 8y ago
> which means it requires much less capital
They burned through billions of dollars of capital. That's quite a lot for a business that requires very little capital. What would they burn if they needed lots of capital? Trillions of dollars?
- Spivak 8y agoI mean half a million drivers each with a car that say costs $20k over its lifetime is about 10 billion. So like maybe?
- dragandj 8y agoIs there a single company in the world that pays for its machinery with cash, upfront? I don't think so.
- rmah 8y ago500,000 drivers * $20,000/car => $10,000,000,000 or $10 bil, not $10 trillion. Thus far, Uber has raised $24.2 bil in financing so they could have bought cars for every driver easily. No idea what they did with all that money.
- robryan 8y agoSubsidized fares.
- nimz 8y ago$20K is a very low estimate for cost of owning a car. Edmunds estimates the 5-year "True Cost to Own" of a Toyota Camry for home-use is $35K. This is based on a 15K miles a year, Uber drivers can easily put on 50,000+ miles a year.