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From an investors point of view the last thing you want is an Uber situation, where you have to classify all drivers as employees and take on a new massive cost
by xmdx 6y ago
From an investors point of view the last thing you want is an Uber situation, where you have to classify all drivers as employees and take on a new massive cost. It's one of their biggest risks at the moment.
From a human point of view I hope that does happen.
They even admit it's a huge problem with their profitability plan: https://london.eater.com/2021/3/24/22347981/deliveroo-delivery-uk-riders-ipo-valuation https://london.eater.com/2021/3/24/22347981/deliveroo-delive...
- vonwoodson 6y agoWorse than that: Uber has yet to turn a profit!! [1] [2] Even treating its “independent contractors” like d09(c)h!7 isn’t enough to make the business profitable. As best I can tell, investors are literally investing in the idea... no, hope, that companies can somehow exist without real employees. That they can Pray Away the Proletariat. [1] : https://morningology.com/four-top-reasons-why-uber-isnt-profitable/111465/ https://morningology.com/four-top-reasons-why-uber-isnt-prof... [2] : https://www.forbes.com/sites/bethkindig/2020/03/25/can-uber-become-profitable-this-year-deep-dive-analysis/?sh=3c50d18f396d https://www.forbes.com/sites/bethkindig/2020/03/25/can-uber-...
- xmdx 6y agoI don't think immediate profitability is a concern for Uber, investors are all in on future profits when/if they move to autonomous cars. The profitability is far greater then, rather than now. I don't know how deliveroo future profits look in comparison.
- KptMarchewa 6y agoThey sold autonomous car division few months ago. If they won't own the technology, then Uber has no moat when it comes to service - people generally use cheapest ride hailing app.