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There's a kind of dance that happens in arguments about the post office where somebody points out that the USPS is actually profitable, absent its pension oblig
by dionidium 5y ago
There's a kind of dance that happens in arguments about the post office where somebody points out that the USPS is actually profitable, absent its pension obligations, and then somebody else responds that, yeah, but they actually do have those pension obligations, so you can't erase them from the profitability calculation, but then somebody else argues that, sure, but the point is that it's not critical to the functioning of a mail delivery service that they have so many pension obligations and the point is that such a service could very well be profitable, so it's a little silly to say, "the USPS can't be profitable" when what you mean is that any organization similarly saddled with historical pension obligations couldn't be profitable. You're not really saying anything interesting about mail delivery, in other words.
I feel like there's something similar happening here. It seems fairly clear that Uber's currently structured around burning a bunch of money, but...burning that money isn't critical to the functioning of a rideshare business.
People are just kind of talking past one another on this, I think.
- brightball 5y agoThere's a lot of major interests out there that have essentially been at war with Uber from day 1. The cab driver's unions in different cities primarily. All of these interests want nothing more than to see Uber fail and will amplify any projections like these. My simple question...if Yellow Cab can be profitable, what makes it so hard for Uber or Lyft to be profitable?
- OldHand2018 5y agoYellow Cab doesn't have to pay hundreds of millions of dollars in executive compensation, nor does it need to hire thousands of developers. Yellow Cab's annual expenses are probably less than 1 month of Uber's AWS bill.