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And yet their financials under current limitations of reality are utter shit. Who would buy this?

by zaroth 8y ago

ghaff 8y ago
I honestly don't understand why (barring greater fool theory/delusion/etc.) Uber's new CEO didn't just say that prices had to go up 50%-100% (to basically cab fares) to create a sustainable business. It is a better service in many cases after all. If you're not interested in using the service at those prices? Sorry. We don't want you as a customer. There would have been howls of rage from young urbanites who had structured their lives around subsidized transportation. But... Lyft could have contested this but I'm not sure it would have been credible.
- grandmczeb 8y ago
  > Uber's new CEO didn't just say that prices had to go up 50%-100% (to basically cab fares) to create a sustainable business. I’m assuming you mean to say he did say that? Otherwise I’m not sure I understand your comment. If so, can you link the statement you’re referring to?
  - ghaff 8y ago
    I'm saying that Uber basically kept prices where they were when they really needed to jack them up. Which he didn't do.
    - grandmczeb 8y ago
      Ah, I took the period at the end of “etc.” to be separating two sentences. It makes much more sense reading it the correct way :) Regardless, Uber is profitable on a per ride basis in most markets, except for those they’re trying to expand in. In established markets raising prices would lower demand for rides faster than it increases revenue.
- traek 8y ago
  Really? You can’t think of any reasons why he wouldn’t say that? How about: because he was hired to take the company to an IPO, and they’re selling a growth story in that IPO.
  - ghaff 8y ago
    That falls under greater fool theory.
- waronxmas 8y ago
  Fares only need to go up 11% to break even today and that assumes no increases in efficiency (and similar market size at increased rates...). Lyft had bookings of $8B, and lost $900M.

And yet their financials under current limitations of reality are utter shit. Who would buy this?

by zaroth 8y ago

And yet their financials under current limitations of reality are utter shit. Who would buy this?

I honestly don't understand why (barring greater fool theory/delusion/etc.) Uber's new CEO didn't just say that prices had to go up 50%-100% (to basically cab fares) to create a sustainable business. It is a better service in many cases after all. If you're not interested in using the service at those prices? Sorry. We don't want you as a customer. There would have been howls of rage from young urbanites who had structured their lives around subsidized transportation. But... Lyft could have contested this but I'm not sure it would have been credible.

grandmczeb 8y ago
> Uber's new CEO didn't just say that prices had to go up 50%-100% (to basically cab fares) to create a sustainable business. I’m assuming you mean to say he did say that? Otherwise I’m not sure I understand your comment. If so, can you link the statement you’re referring to?
- ghaff 8y ago
  I'm saying that Uber basically kept prices where they were when they really needed to jack them up. Which he didn't do.
  - grandmczeb 8y ago
    Ah, I took the period at the end of “etc.” to be separating two sentences. It makes much more sense reading it the correct way :) Regardless, Uber is profitable on a per ride basis in most markets, except for those they’re trying to expand in. In established markets raising prices would lower demand for rides faster than it increases revenue.
traek 8y ago
Really? You can’t think of any reasons why he wouldn’t say that? How about: because he was hired to take the company to an IPO, and they’re selling a growth story in that IPO.
- ghaff 8y ago
  That falls under greater fool theory.
waronxmas 8y ago
Fares only need to go up 11% to break even today and that assumes no increases in efficiency (and similar market size at increased rates...). Lyft had bookings of $8B, and lost $900M.