3 ms·

Uber is not making money? How? Why?

• micael_dias 8y ago
  Their expenses are higher than their revenue.
  • askafriend 8y ago
    If I bought 10 McDonald's franchises today, my expenses would be higher than my revenue for probably the entire first year if not more. If things are going well, and I make another bet by buying 10 more, my expenses would continue being higher than my revenue (even if the first 10 stores become profitable). If I keep doing this, I may not show a profit on my balance sheet for a long time. This example illustrates why "expenses are higher than revenue" doesn't reveal anything and that such a simplistic picture of a business is useless.
    • scarface74 7y ago
      What would it reveal if your marginal costs were greater than your marginal revenue? Has anyone done a cohort analysis?
• uptown 8y ago
  Here's two answers: https://twitter.com/neilanalien/status/627873374505562112?lang=en https://twitter.com/neilanalien/status/627873374505562112?la...
• jandrese 8y ago
  They're blowing a ton of money on R&D for autonomous cars. Also they are spending a fortune on lawyers to fight every municipal cab company in the world. Also, their business model is undercutting the existing competition, which makes big profits hard to come by.