3 ms·

Exactly. People saying this are unable to separate growth investment from core profitability. Uber or Lyft can pull out of money losing long tail markets, cut d

Exactly. People saying this are unable to separate growth investment from core profitability. Uber or Lyft can pull out of money losing long tail markets, cut down staff to may be just 500 and would run just fine but would immediately become immensely profitable. However price to pay would be growth stagnation and robustness against future unknowns. For now they are doing the right thing to lose money to win the market share and diversity into other logistic businesses as well as prepare for future where autonomous vehicles would be the norm.

LunaSea 7y ago
You are generalising the case of San Francisco as if the rest of the world was payed $150K a year and was able to throw wads of cash to buy groceries in Uber cars.
- ghaff 7y ago
  The bubble is quite amazing. Outside of a very small number of cities (and even there it's probably largely confined to the upper end of income), most locals do not routinely take taxis/Uber on a daily, weekly, or probably even monthly basis. The typical American owns a car that is probably a number of years old and drives to the grocery store to buy food which they cook at home.
- rainyMammoth 7y ago
  It's still amazing to me to see that people don't realize the Bay Area//New York//Seattle are micro bubbles that don't represent the world or even the united states. Yes, people in those cities are mainly rich Yuppies that don't mind throwing away money. Everywhere else I always try to remember that most people (70% I think) wouldn't be able to cover a 400$ unexpected expense.
  - mav3rick 7y ago
    Most people in SF or NYC don't own an car. Unlike "yuppies" outside. For them ride-sharing is factored into monthly expenses. Please be respectful while engaging.
- mav3rick 7y ago
  I didn't justify Uber based on SF. I just told the Uber usage patterns I see in the city

3 ms·

Exactly. People saying this are unable to separate growth investment from core profitability. Uber or Lyft can pull out of money losing long tail markets, cut d

by sytelus 7y ago

LunaSea 7y ago
You are generalising the case of San Francisco as if the rest of the world was payed $150K a year and was able to throw wads of cash to buy groceries in Uber cars.
- ghaff 7y ago
  The bubble is quite amazing. Outside of a very small number of cities (and even there it's probably largely confined to the upper end of income), most locals do not routinely take taxis/Uber on a daily, weekly, or probably even monthly basis. The typical American owns a car that is probably a number of years old and drives to the grocery store to buy food which they cook at home.
- rainyMammoth 7y ago
  It's still amazing to me to see that people don't realize the Bay Area//New York//Seattle are micro bubbles that don't represent the world or even the united states. Yes, people in those cities are mainly rich Yuppies that don't mind throwing away money. Everywhere else I always try to remember that most people (70% I think) wouldn't be able to cover a 400$ unexpected expense.
  - mav3rick 7y ago
    Most people in SF or NYC don't own an car. Unlike "yuppies" outside. For them ride-sharing is factored into monthly expenses. Please be respectful while engaging.
- mav3rick 7y ago
  I didn't justify Uber based on SF. I just told the Uber usage patterns I see in the city