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> There are numerous profitable companies in Europe and Asia doing the same thing as Uber. How can Uber be doing the same thing if Uber is losing money doing t
by aeturnum 6y ago
> There are numerous profitable companies in Europe and Asia doing the same thing as Uber.
How can Uber be doing the same thing if Uber is losing money doing the thing and the other companies make money doing it?
Even if one or more sections of Uber are profitable, it's likely that those sections rely on functions performed by unprofitable sections of the company. Disentangling those elements isn't simple. It's possible that Uber as-it-exists-now can never transition to profitability but a company-like-Uber-in-some-ways could be profitable in the future.
- ghaff 6y ago>but a company-like-Uber-in-some-ways could be profitable in the future In a sufficiently dense area, there is clearly a market for app-summoned taxis (for various values of who owns/maintains/pays for said cab). Prices may be higher than today's rideshare and volume lower. But there's a market for it. Just probably in fewer areas/at fewer times/with more expensive rates than today.
- Udik 6y ago> In a sufficiently dense area, there is clearly a market for app-summoned taxis (for various values of who owns/maintains/pays for said cab) Oh well. For sure, but it's a pretty vague statement, isn't it? We're not talking about some modest value that can keep some small company running; we're talking about $75 billion value. I'm sure that not one, but many small companies can thrive providing local services to taxi drivers collecting and dispatching hails. But that's a far cry from that to a single global company valued at almost a hundred billion dollars.