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There is an inherent pricing discussion happening here. The op noted that they paid $15 for Uber and $40 for a taxi. While it’s a given that the Uber was a be

by lumost 4y ago

There is an inherent pricing discussion happening here. The op noted that they paid $15 for Uber and $40 for a taxi. While it’s a given that the Uber was a better experience, it’s not a given that the Ubers price is a sustainable one. The Uber driver circling at 5 am may not be turning a profit with $15 airport rides. This business may only be sustainable for as long as VC money flows, and drivers are willing to go bust.

JumpCrisscross 4y ago
> business may only be sustainable for as long as VC money flows, and drivers are willing to go bust Uber makes something like a 36% variable margin [1]. Even adding back sales & marketing we find a positive, if small, margin. They lose about 11% per ride. But that varies wildly region to region. (New York, for example, is profitable.) Drivers' economics are more precarious. But the "as long as VC money flows" argument hasn't made sense since Uber's 2019 IPO. [1] https://gadallon.substack.com/p/pool-is-back https://gadallon.substack.com/p/pool-is-back
- lumost 4y ago
  > Drivers' economics are more precarious. > They lose about 11% per ride. So on net, they may be out something like 11-30% per ride dependent on location. Those are awful economics. More concerning would be busy season/dry season dynamics for Uber drivers. If there are months where rides decline in frequency or become more concentrated - then driver economics may be substantially worse than the average would have you believe.
remflight 4y ago
Can you please stop with the false narrative that Uber is using VC money? They haven’t gotten any new investor money since pre-ipo several years ago. It’s a disingenuous lie to keep claiming “as long as VC money flows”. There isn’t and hasn’t been for years.
- lumost 4y ago
  They still lose Billions per year no? Looks like they recorded a 6 Billion dollar Q1 loss. It may not be VC money anymore, but to claim that they are self-funding would be extremely wrong. https://www.marketwatch.com/story/uber-posts-nearly-6-billion-loss-from-investments-but-reports-a-rides-rebound-beating-estimates-11651664829#:~:text=Uber%20reported%20a%20first%2Dquarter,stakes%20in%20Grab%20Holdings%20Ltd https://www.marketwatch.com/story/uber-posts-nearly-6-billio....
  - remflight 4y ago
    That’s a GAAP loss. Did you read the article you posted?
somecommit 4y ago
Not really relevant, for me at least, because the price isn't really the real issue. I would be glad to pay $20 or even $25, that's not my point, but my main point was the trust and reliance. And maybe because I've worked some year as a freelancer a long time ago I have a natural aversion for Uber. But no way I'm not using them or any other competing app next time I'm in a foreign country.

by lumost 4y ago

JumpCrisscross 4y ago

> business may only be sustainable for as long as VC money flows, and drivers are willing to go bust Uber makes something like a 36% variable margin [1]. Even adding back sales & marketing we find a positive, if small, margin. They lose about 11% per ride. But that varies wildly region to region. (New York, for example, is profitable.) Drivers' economics are more precarious. But the "as long as VC money flows" argument hasn't made sense since Uber's 2019 IPO. [1] https://gadallon.substack.com/p/pool-is-back https://gadallon.substack.com/p/pool-is-back

lumost 4y ago
> Drivers' economics are more precarious. > They lose about 11% per ride. So on net, they may be out something like 11-30% per ride dependent on location. Those are awful economics. More concerning would be busy season/dry season dynamics for Uber drivers. If there are months where rides decline in frequency or become more concentrated - then driver economics may be substantially worse than the average would have you believe.

remflight 4y ago

Can you please stop with the false narrative that Uber is using VC money? They haven’t gotten any new investor money since pre-ipo several years ago. It’s a disingenuous lie to keep claiming “as long as VC money flows”. There isn’t and hasn’t been for years.

lumost 4y ago
They still lose Billions per year no? Looks like they recorded a 6 Billion dollar Q1 loss. It may not be VC money anymore, but to claim that they are self-funding would be extremely wrong. https://www.marketwatch.com/story/uber-posts-nearly-6-billion-loss-from-investments-but-reports-a-rides-rebound-beating-estimates-11651664829#:~:text=Uber%20reported%20a%20first%2Dquarter,stakes%20in%20Grab%20Holdings%20Ltd https://www.marketwatch.com/story/uber-posts-nearly-6-billio....
- remflight 4y ago
  That’s a GAAP loss. Did you read the article you posted?

somecommit 4y ago

Not really relevant, for me at least, because the price isn't really the real issue. I would be glad to pay $20 or even $25, that's not my point, but my main point was the trust and reliance. And maybe because I've worked some year as a freelancer a long time ago I have a natural aversion for Uber. But no way I'm not using them or any other competing app next time I'm in a foreign country.