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Bunch of random engineers in this thread talking about business when they have no clue how companies are run. Yes- Uber was making loss before. But their rider
by product50 6y ago
Bunch of random engineers in this thread talking about business when they have no clue how companies are run.
Yes- Uber was making loss before. But their ridership was growing and they were giving incentives on the supply side (drivers) to bring more players in. Thus it made sense to continue investing in headcount to grow. Now, though, everything is disrupted. It doesn't matter that they are losing money slower - if the outlook of the business is weak then they cut costs and reduce headcount.
- rlanday 6y ago“Lose money on every sale but make it up on volume” is not a sustainable business model.
- product50 6y agoOh please. Once you have very high volume and strong market share you can gradually increase prices to improve profitability.
- rlanday 6y agoHow much higher can Uber’s volume get? They will probably never exceed the volume they were seeing a few months ago and they still managed to lose $8.5 billion last year. How in the world do you increase prices by that much without losing most of your customers? Unfortunately in the age of coronavirus, the irrational exuberance is gone now.