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I think parent is arguing three things: 1) The bulk of their apparent loss is a one-time expense 2) They are improving the unit economics of ride sharing and
by TAForObvReasons 7y ago
I think parent is arguing three things:
1) The bulk of their apparent loss is a one-time expense
2) They are improving the unit economics of ride sharing and that, if the trend continues, they will be positive in the future.
3) The divisions that are losing money are new ventures like Uber eats and represent a short-term investment that should payoff
If they can reach positive unit economics after subsidies, that would be great for the company. It is still unknown, especially since Lyft and other companies are competing in the space.
- formercoder 7y agoAlso the stock based comp is non cash so it impacts net income but not cash from operations. CFO - Capex is a better measure of a companies cash flow.
- hrktb 7y ago> 2) They are improving the unit economics of ride sharing and that, if the trend continues, they will be positive in the future. I think the main contention is that they could as well be at their max expansion right now. Not in a purely hypothetical way, but because the actors of the market had the time to digest and react to Uber’s business. In particular, drivers, legislators, scooter/bike rentals, etc. could be legitimately seen as forces stopping Uber from keeping with their business practices and business model.