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Uber's net GAAP loss, excluding losses from investments in DiDi and other companies, is around 300m last quarter [1] which is a ~1% loss on their gross bookings
by ceeplusplus 4y ago
Uber's net GAAP loss, excluding losses from investments in DiDi and other companies, is around 300m last quarter [1] which is a ~1% loss on their gross bookings. Most of that is stock based comp. Their FCF loss was only 47m last quarter.
I know HN likes to hate on Uber and other gig apps but a 1% margin is something they can easily make up given their stated take rate on mobility and delivery is around 20%.
> So what market is Uber not established in
If you follow their earnings calls (or that of DoorDash as well), advertising is a huge growing market for these companies. My guess is they take on an airline business model: zero to slim margins on the core offerings, but huge money on advertising and ancillary sources of revenue (for airlines, this is credit card points).
[1] https://investor.uber.com/news-events/news/press-release-details/2022/Uber-Announces-Results-for-First-Quarter-2022/default.aspx https://investor.uber.com/news-events/news/press-release-det...
- closewith 4y ago> (for airlines, this is credit card points) In the United States, maybe, the only market where credit card points are meaningful?
- aetherson 4y agoI think we should split the difference. Yes, Uber is close to break-even and they aren't going to just disappear. But there's still a big gap for them to close between "breaking even" and "profitable enough to justify a $50B valuation." There's plenty of room for a moderate view in which Uber survives as a business but their investors are extremely unhappy.