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That's not true RE: losses scaling with growth. Uber's losses last year narrowed while revenue still grew considerably. I think with the public market's empha
by aliston 7y ago
That's not true RE: losses scaling with growth. Uber's losses last year narrowed while revenue still grew considerably. I think with the public market's emphasis on profitability, Lyft and Uber will both raise prices and cut incentive spend in sync, making them both more profitable over time.
- martinald 7y agoNo, that's not true. Uber's losses in 2018 were about the same as 2017, if you take out the income they raised from shutting down Russia and SE Asia and selling (merging?) those operations to Yandex/Grab. This is quite clearly a one time event.
- aliston 7y agoGo look at the p&l... top line revenue was up ~3 billion while costs were only up ~2 billion.
- zawazzi 7y agoReally? My perspective is that I use Uber as a substitute good for owning a car. If the cost of uber > car, I'm gonna go and buy one. So they can raise prices, but likely there's quite a bit of price sensitivity, particularly from their high volume users.