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60m operating loss on 6 billion revenue = 1%. So raise prices by 10% and your making 540m. The market can bear that increase, but they still rather be a solo p
by somenewaccount1 4y ago
60m operating loss on 6 billion revenue = 1%. So raise prices by 10% and your making 540m. The market can bear that increase, but they still rather be a solo player and destroy Lyft first. All this doom and gloom is hubris.
- menzoic 4y agoUber isn't trying to be a solo player. That would be bad, gov would just break them up. Uber is trying to have #1 market share
- aetherson 4y agoAre you raising prices 10% and take it all to your bottom line? That's impressive. Have credit cards stopped charging for their services? Do your drivers not want more of the money when you raise prices? And of course you're assuming that you don't lose volume when you raise prices, because apparently we're in fantasy land right now. $60M loss is small enough that Uber can almost certainly get to breakeven or a tiny profit -- but a tiny profit isn't enough to justify their current valuation. They have always needed a business that is solidly profitable on great revenue to justify the valuations they've had since the mid-teens, and they'd rather try to convince people that those profits are coming someday than to try to make it as an extremely low-margin company (which is the correct thing for them to do in service to their shareholders, who would presumably be very sad if Uber contracted to like a $10B valuation company).