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Curious, and again, I'm no expert. Uber Freight grew at 100%+ but what was the cost of capital, and what were the margins? A company out of Florida called Arriv

Curious, and again, I'm no expert. Uber Freight grew at 100%+ but what was the cost of capital, and what were the margins? A company out of Florida called Arrive logisitcs is the size of Uber Freight, old school company, and they also grew at that rate. The argument with FB is diff, FB relies on network effects and a social graph, literally winner take all, you could argue that exists in localized taxi markets, but again, I think of Warren Buffet and "the cirlce of competence". How many investors are reading CH Robinsons annual reports and comparing said numbers? Just some thoughts. Remember, interest rates and capital markets the way they are today, may not be the way they are tomorrow. - WB

fusdgsaf 7y ago
@nojvek
- nojvek 7y ago
  I’m no expect and very much speculating too. My appreciation from Uber comes from my Travels. While Uber faces significant competition in US with lyft for rides, DoorDash, caviar, etc for food delivery, Convoy and tons of other companies for Freight, they are a global company. I use the same Uber app for US, Australia, Dubai, Kenya, India. In a whole bunch of countries they’ve bought out the competition e.g Careem in Dubai and they’re operating like a monopoly. Multiple brands but Uber still owns the big pie. They’re running operations at a massive scale. The operational costs bring customer support, software ops. Looks like a software company that way. They don’t own cars and drivers are contractors (sure changing in California) but remember Uber is a global company. A decent chunk of their revenue is non-US. They may be negative in acquiring new drivers and customers but for their active base, they make a decent profit. Freight right now is a very paper/pen based inefficient business with a bunch of middlemen. Uber is making that efficient just as they did to Taxis. Let’s see how this all plays out but I am somewhat bullish on them.

fusdgsaf 7y ago

@nojvek

nojvek 7y ago
I’m no expect and very much speculating too. My appreciation from Uber comes from my Travels. While Uber faces significant competition in US with lyft for rides, DoorDash, caviar, etc for food delivery, Convoy and tons of other companies for Freight, they are a global company. I use the same Uber app for US, Australia, Dubai, Kenya, India. In a whole bunch of countries they’ve bought out the competition e.g Careem in Dubai and they’re operating like a monopoly. Multiple brands but Uber still owns the big pie. They’re running operations at a massive scale. The operational costs bring customer support, software ops. Looks like a software company that way. They don’t own cars and drivers are contractors (sure changing in California) but remember Uber is a global company. A decent chunk of their revenue is non-US. They may be negative in acquiring new drivers and customers but for their active base, they make a decent profit. Freight right now is a very paper/pen based inefficient business with a bunch of middlemen. Uber is making that efficient just as they did to Taxis. Let’s see how this all plays out but I am somewhat bullish on them.