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You can't imagine any scenario under which an 11 billion dollar money printing machine which is growing and costs 11 billion + 3 billion to run can turn cash fl
by fullshark 8y ago
You can't imagine any scenario under which an 11 billion dollar money printing machine which is growing and costs 11 billion + 3 billion to run can turn cash flow positive?
- Marazan 8y agoWhen your business is selling $10 for $5 then no, I cannot see a way to turn cash flow positive.
- temporalparts 8y agoYour example isn't proportionate. It's selling $14 for $11, which is much closer to selling $10 for $8, which is a lot more reasonable than $10 to $5.
- Marazan 8y agoCool, cool. Just gotta raise prices by 25% or cut costs by 20%. Trivial.
- treis 8y agoThey're not doing that. They got $11.27 in revenue for a cost of $9.65. The loss stems from spending an additional $4.67 on advertising and R&D.
- Marazan 8y ago1.5 billion on R&D, 3 billion on marketing. Uber don't get the income from the rides without the marketing so I don't get why you get to ignore that when working out if they are profitable or not.
- inverse_pi 8y agoDoes marketing and R&D cost grow linearly with number of rides though?
- mechagodzilla 8y agoThe “marketing” cost does when it’s driver / rider incentives. It’s literally selling a $10 ride for $8 by chipping in $2 from the marketing budget.
- LordHumungous 8y agoNot true, read the S1. They lose money on every ride due to driver incentives.
- treis 8y agoCan you be more specific than a 280 page document?