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The cost to Uber users is not the same as revenue to Uber corporate. Uber corporate revenue is net of driver pay.

by Lavery 7y ago

sithlord 7y ago
revenue is all monies before any kind of expense...
- jagged-chisel 7y ago
  While money after expenses (“profit” to the layman) is “income”
scarface74 7y ago
You pay Uber and Uber pays drivers. Revenue by definition is money that Uber gets before expenses.
- boh 7y ago
  Uber does not pay drivers. Passengers pay drivers who pay Uber to use their platform (otherwise they'd be employees which Uber is fighting to avoid).
  - jdmichal 7y ago
    That may be how Uber wants to phrase it, but I'm pretty sure the thing that shows up on my CC statement is Uber, not the driver's name... IE, if they're claiming that, it's a legal fiction. Whether that legal fiction would stand in court is up to the court.
    - nybble41 7y ago
      > I'm pretty sure the thing that shows up on my CC statement is Uber, not the driver's name That just means that Uber is acting as a payment processor for the driver. If you buy an app or make an in-app purchase in the Google Play Store then Google's name appears on your statement; that doesn't make the app publisher Google's employee. The same goes for non-app vendors using Google Pay or similar services such as PayPal. The point of Uber is to connect riders with drivers and provide standard systems for payment and review—the actual transportation is up to the users.
  - scarface74 7y ago
    Uber paying drivers does not make the drivers employees. When I have worked as a software developer as a 1099 contractor and someone bought the resulting software, does that mean that the customer who bought the software was paying me? Would the payment for the software be counted as revenue for the company? When I was a part time fitness instructor, I taught at corporate gyms where the employees had free memberships. I got a 1099 every year from the gym. Did the employees pay me? Would that be an expense of the corporation?
    - boh 7y ago
      Currently the prevailing legal arguments against Uber attempt to categorize drivers as employees, not contractors.
- Lavery 7y ago
  There're like three sub-threads to your comment now of people getting it wrong. What you are describing is Gross Bookings. If you don't believe me, Uber's quarterly financial results are here and you can see for yourself. https://investor.uber.com/news-events/news/press-release-details/2019/Uber-Announces-Results-for-Third-Quarter-2019/default.aspx https://investor.uber.com/news-events/news/press-release-det...
- eigenvalue 7y ago
  This is not how the actual GAAP accounting works for a company like Uber. The total the customers pay is referred to as bookings. There was a similar issue with Groupon when that was the hot stock of the day: https://dealbook.nytimes.com/2011/09/23/groupon-changes-its-revenue-accounting/ https://dealbook.nytimes.com/2011/09/23/groupon-changes-its-...

The cost to Uber users is not the same as revenue to Uber corporate. Uber corporate revenue is net of driver pay.

by Lavery 7y ago

The cost to Uber users is not the same as revenue to Uber corporate. Uber corporate revenue is net of driver pay.

sithlord 7y ago

revenue is all monies before any kind of expense...

jagged-chisel 7y ago
While money after expenses (“profit” to the layman) is “income”

scarface74 7y ago

You pay Uber and Uber pays drivers. Revenue by definition is money that Uber gets before expenses.

boh 7y ago
Uber does not pay drivers. Passengers pay drivers who pay Uber to use their platform (otherwise they'd be employees which Uber is fighting to avoid).
- jdmichal 7y ago
  That may be how Uber wants to phrase it, but I'm pretty sure the thing that shows up on my CC statement is Uber, not the driver's name... IE, if they're claiming that, it's a legal fiction. Whether that legal fiction would stand in court is up to the court.
  - nybble41 7y ago
    > I'm pretty sure the thing that shows up on my CC statement is Uber, not the driver's name That just means that Uber is acting as a payment processor for the driver. If you buy an app or make an in-app purchase in the Google Play Store then Google's name appears on your statement; that doesn't make the app publisher Google's employee. The same goes for non-app vendors using Google Pay or similar services such as PayPal. The point of Uber is to connect riders with drivers and provide standard systems for payment and review—the actual transportation is up to the users.
- scarface74 7y ago
  Uber paying drivers does not make the drivers employees. When I have worked as a software developer as a 1099 contractor and someone bought the resulting software, does that mean that the customer who bought the software was paying me? Would the payment for the software be counted as revenue for the company? When I was a part time fitness instructor, I taught at corporate gyms where the employees had free memberships. I got a 1099 every year from the gym. Did the employees pay me? Would that be an expense of the corporation?
  - boh 7y ago
    Currently the prevailing legal arguments against Uber attempt to categorize drivers as employees, not contractors.
Lavery 7y ago
There're like three sub-threads to your comment now of people getting it wrong. What you are describing is Gross Bookings. If you don't believe me, Uber's quarterly financial results are here and you can see for yourself. https://investor.uber.com/news-events/news/press-release-details/2019/Uber-Announces-Results-for-Third-Quarter-2019/default.aspx https://investor.uber.com/news-events/news/press-release-det...
eigenvalue 7y ago
This is not how the actual GAAP accounting works for a company like Uber. The total the customers pay is referred to as bookings. There was a similar issue with Groupon when that was the hot stock of the day: https://dealbook.nytimes.com/2011/09/23/groupon-changes-its-revenue-accounting/ https://dealbook.nytimes.com/2011/09/23/groupon-changes-its-...