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> USA centric answer here: In flyover country, in most cities ride share has been life changing for people that would be stuck using overpriced local taxis (in

by bsder 4y ago

> USA centric answer here: In flyover country, in most cities ride share has been life changing for people that would be stuck using overpriced local taxis (in smaller 80K-150K person cities taxi rates are confiscatory and service is often VERY limited) or terrible public transportation. And if Uber/Lyft had confined themselves to delivering reliable transport at a reasonable price in Indianapolis, Pittsburgh, Cleveland, etc. people would be singing their praises. But they didn't. Because those places weren't just unprofitable but were wildly unprofitable. Which is stupid because I suspect being a reliable broker between driver and client could still be profitable. Having someone put in "I need to go from A to B at time X." and having a pool of drivers who can go "I'm going to B anyway, so why don't I adjust my time and make some money for doing so." would be a good thing in "flyover" country. However, it won't be venture capital profitable. And that's really the crux of the problem here.

indymike 4y ago
> But they didn't. Because those places weren't just unprofitable but were wildly unprofitable. Uber as a company is "wildly unprofitable" across the board. I cracked open Uber's 2021 annual report, and I'm not sure they are profitable anywhere. Their revenue model really appears to support the notion they are simply displacing taxi operators, "23% of mobility bookings came from 5 cities..." and listed only NYC and Chicago in the US.It went on to say that 11% of mobility bookings came from airports (and that revenue stream was under attack from the taxi industry). > However, it won't be venture capital profitable. I've never had a VC ask for profits. Only growth where revenue and expenses would show we could trim the sails and break even in a pinch. Since Uber is publicly traded, I suspect they are going to have to do better than an annual report that basically projects profitability like I do winning the lottery.

by bsder 4y ago

indymike 4y ago

> But they didn't. Because those places weren't just unprofitable but were wildly unprofitable. Uber as a company is "wildly unprofitable" across the board. I cracked open Uber's 2021 annual report, and I'm not sure they are profitable anywhere. Their revenue model really appears to support the notion they are simply displacing taxi operators, "23% of mobility bookings came from 5 cities..." and listed only NYC and Chicago in the US.It went on to say that 11% of mobility bookings came from airports (and that revenue stream was under attack from the taxi industry). > However, it won't be venture capital profitable. I've never had a VC ask for profits. Only growth where revenue and expenses would show we could trim the sails and break even in a pinch. Since Uber is publicly traded, I suspect they are going to have to do better than an annual report that basically projects profitability like I do winning the lottery.