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How is it that a trainwreck like We* slips past a major financial player? I've seen posts here that were skeptical of We from the beginning, and so many of Adam
by katmannthree 7y ago
How is it that a trainwreck like We* slips past a major financial player? I've seen posts here that were skeptical of We from the beginning, and so many of Adam's financial moves have appeared to be self serving even to laypeople.
Was SoftBank blind to the issues? Was it some form of willful ignorance?
- rapsey 7y agoUber and lyft are trainwrecks as well. They IPO’d a business that burns money without any hope for profit. We are just witnessing the slow bursting of the current bubble and people are waking up to basic economics again.
- doc_gunthrop 7y agoIt seems to me that Uber's endgame goal is to replace drivers with a reliable, matured self-driving technology. If and when that happens, they can purge their massive fleet of drivers thereby eliminating their largest overhead cost.
- rapsey 7y agoUnfortunately there is no realistic way their money will stretch that far into the future.
- sharkmerry 7y agoand also gain an enormous new overhead cost in having to actually own the cars.
- travisoneill1 7y agoYeah, it's crazy. It's like Softbank's team wasn't even running basic financial models. And once Wall St wouldn't touch it, Softbank never really even made a counterargument in favor of its valuation. It seems like they cut a $10 billion check just based on emotion, but that is just hard to believe. And the bankers on the IPO must have known that it was going to be DOA and took the business anyway just to grab some fees.