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> Is the claim that it's just so poorly managed that it's all being blown on overpriced tech salaries? I think that's the main argument. Uber had ~$17Bn reven

> Is the claim that it's just so poorly managed that it's all being blown on overpriced tech salaries? I think that's the main argument. Uber had ~$17Bn revenue on ~1.44Bn trips in 2020 per quarter. That's ~$12 per trip. Salaries are >$7Bn. That's about $1 per trip. Add in the marketing and server costs - and it's close to $3 per trip - without profit. Then they're going to want a >10% profit margin (another $1). When >50% of trips are only a few miles and <$9 - that's a lot of overhead - not even including Visa's ~6% cut. The Taxi company was happy to just get a 10-20% cut. Uber needs a 40% cut to break even. As New York is showing - you don't need to spend >$14Bn per year on an app. Uber's app is pretty awesome - but riders aren't going to pay a 30% premium to use it. And driver's (of equal quality) definitely aren't going to take a 50%+ pay-cut to make up the difference.

vineyardmike 5y ago
> Salaries are >$7Bn Corporate salaries??
kelnos 5y ago
> Uber's app is pretty awesome - but riders aren't going to pay a 30% premium to use it. When the alternative is the traditional taxi experience? Hell yes I am going to pay a 30% premium to avoid that.
- ajb92 5y ago
  What aspects of riding in a traditional taxi do you dislike most?
  - tgsovlerkhgsel 5y ago
    It boils down to the lack of a reputation system. There is little incentive for drivers to behave in a good way, because anything bad he does won't directly impact him, beyond maybe make people avoid taxis altogether (which seems unlikely, as taxis are usually a last resort when you have no other realistic options). And it doesn't take many bad apples to spoil the bunch. One of Uber's main contributions is changing this dynamic.