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When your business is selling $10 for $5 then no, I cannot see a way to turn cash flow positive.
by Marazan 8y ago
When 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?