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"Uber's success has been based on two unsustainable tactics: subsidizing fares and exploiting drivers" Considering Uber loses a billion dollars a quarter, I th

"Uber's success has been based on two unsustainable tactics: subsidizing fares and exploiting drivers" Considering Uber loses a billion dollars a quarter, I think the only people that are being 'exploited' are investors. Investor money is going straight to drivers and riders.

ivalm 7y ago
Investors presumably know the risks involved. On the other hand, many drivers are inexperienced and do not know the full cost of driving for Uber (vehicle depreciation and increased liability).
- Gibbon1 7y ago
  > Investors presumably know the risks involved. Except for working stiffs who are going to end up with Uber stock stuffed in their retirement accounts by unscrupulous portfolio managers.
  - solveit 7y ago
    That is absolutely a known risk of investing in anything other than very low-risk investments (and index funds I guess?).
arcticbull 7y ago
In a way, everyone's being exploited except the rider. The drivers are barely making minimum wage once all expenses are factored in, the investors money is being set ablaze. The riders, on the other hand, get to enjoy taxi-like service for about half what it costs to deliver.
Lazare 7y ago
That doesn't follow. It's absolutely possible for drivers to be net losers. Imagine than in some quarter Uber collected $3 billion of fares, received $5 billion in services from drivers, paid the drivers $4 billion, and made up the $1 billion shortfall with investment. Obviously drivers are making the free decision to drive for Uber, but it's no more implausible to think that some are working on mistaken assumption or will come out behind in the end than to think the same of investors. (Actually, if anything, it's more plausible, given the disparity in information and resources between the average Uber investor and the average Uber driver.) And certainly it's clear that some drivers are not coming out ahead here once you take account vehicle deprecation, running costs, opportunity costs, etc. I'm not saying that's true, but to suggest that a company that is losing money can't also be exploiting their suppliers or employees seems obviously wrong. :)
zouhair 7y ago
I couldn't care less about these kind of predatory investors.

ivalm 7y ago

Investors presumably know the risks involved. On the other hand, many drivers are inexperienced and do not know the full cost of driving for Uber (vehicle depreciation and increased liability).

Gibbon1 7y ago
> Investors presumably know the risks involved. Except for working stiffs who are going to end up with Uber stock stuffed in their retirement accounts by unscrupulous portfolio managers.
- solveit 7y ago
  That is absolutely a known risk of investing in anything other than very low-risk investments (and index funds I guess?).

arcticbull 7y ago

In a way, everyone's being exploited except the rider. The drivers are barely making minimum wage once all expenses are factored in, the investors money is being set ablaze. The riders, on the other hand, get to enjoy taxi-like service for about half what it costs to deliver.

Lazare 7y ago

That doesn't follow. It's absolutely possible for drivers to be net losers. Imagine than in some quarter Uber collected $3 billion of fares, received $5 billion in services from drivers, paid the drivers $4 billion, and made up the $1 billion shortfall with investment. Obviously drivers are making the free decision to drive for Uber, but it's no more implausible to think that some are working on mistaken assumption or will come out behind in the end than to think the same of investors. (Actually, if anything, it's more plausible, given the disparity in information and resources between the average Uber investor and the average Uber driver.) And certainly it's clear that some drivers are not coming out ahead here once you take account vehicle deprecation, running costs, opportunity costs, etc. I'm not saying that's true, but to suggest that a company that is losing money can't also be exploiting their suppliers or employees seems obviously wrong. :)

zouhair 7y ago

I couldn't care less about these kind of predatory investors.