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This is a completely invalid definition of a ponzi scheme. What you have described is anything that is sold on an open market that is not directly used by the f
by anm89 4y ago
This is a completely invalid definition of a ponzi scheme. What you have described is anything that is sold on an open market that is not directly used by the first buyer. By nature, every one of those things only pays out earlier investors when later investors buy in.
A ponzi scheme involves a company who has no underlying revenue model and just shuffles money from late investors to early investors. So uber isn't a ponzi scheme because it generates revenue with an actual line of business. The fact that investors buy into at different times makes it a business like every other public business in our economy, not a ponzi scheme.
- itsoktocry 4y ago>A ponzi scheme involves a company who has no underlying revenue model and just shuffles money from late investors to early investors. Which is exactly what Uber has done for 10 years. Revenue has nothing to do with it. How else do you explain people becoming filthy rich owning companies losing 10s of billions of dollars?
- kasey_junk 4y agoUber is quite upfront about their revenue/profits. A key characteristic of a Ponzi is that you disguise new investments as revenue/profit. Uber might be a bad investment but it’s not a Ponzi scheme.
- kodah 4y agoThere really does need to be a term beyond SPAC that we can use to describe profitless companies seeking investment.
- anm89 4y agoGoogled Uber 2021 Revenue. > $5.78 billion >Uber wrapped 2021 with strong revenue growth and greater adjusted profitability. Today I guess $5.78 billion dollars is pretty close to 0 dollars right ?
- Animats 4y agoRead the only thing that matters, Uber's financial statement to the SEC.[1] Revenue from operations: $17,455,000,000 Loss from operations: $3,834,000,000 The business model still isn't working. [1] https://www.sec.gov/edgar/search/#/entityName=UBER&filter_forms=10-K https://www.sec.gov/edgar/search/#/entityName=UBER&filter_fo...
- anm89 4y agoIt's not that I'm not understanding that they aren't profitable. I'm well aware that they aren't profitable. I think Uber is a terrible business. That doesn't make them a Ponzi scheme. A ponzi scheme is defined by the Revenue model, not by profitability. We don't call all unprofitable businesses ponzi schemes because they are unrelated concepts.
- djbebs 4y agoThat's not what uber has done though