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They will (not would) die. A financial crisis means at least a temporary pullback in investments, and Uber is not cash-flow positive, so without additional fun
by rossdavidh 7y ago
They will (not would) die. A financial crisis means at least a temporary pullback in investments, and Uber is not cash-flow positive, so without additional funding they will shut down eventually. I see no reason to believe they ever will be cash-flow positive, unless perhaps they can get self-driving cars to work, and that seems too far off at this point.
- unhashable 7y agoSounds like you did some napkin math, e.g. current war chest and burn rate over the average length of liquidity shock in a downturn?
- xyzzyz 7y agoAll they need to do to be cash-flow positive is to stop trying to get self-driving cars to work and stop trying to invest in their Eats vertical. They already make good money on ride-hailing services.
- rainyMammoth 7y agoAnd if they do so nothing would justify their current market cap. The stocks would be sent tumbling down.
- rossdavidh 7y agoLast I read, which wasn't that long ago, they were profitable in only like five cities in the world, some of which were preparing new regulation to require that they pay their drivers more.