4 ms·

Seems pretty obvious that the answer is debt. For example, Uber has $11 billion in long term debt as of 2021: https://www.marketwatch.com/investing/stock/uber/

• ianai 4y ago
  Why does Uber need debt? They’re a software, logistics company. It makes sense for a real estate company to be loaded with debt as that’s the nature of the beast. But I don’t see an argument for logistics.
  • worik 4y ago
    > Why does Uber need debt? They’re a software, logistics company. I do not know. I guess to pay super high salaries.
  • adwn 4y ago
    > They’re a software, logistics company. Their product isn't some software, and they're not making money by selling software or a software-based service [1], so they're not a software company. They're selling taxi rides, the fulfillment of which is outsourced to semi-independent contractors. Therefore, they're a taxi company. [1] Yes, they have an app – who doesn't, today – but clients aren't paying for using the app, they're paying for the service arranged via the app.
    • ianai 4y ago
      As I understand it, they claim their worth comes in the algorithm getting someone to their user more efficiently. Still not seeing why all the leverage. For a cab company I suppose it’d be car and insurance/gas costs. This gets more fuzzy because I remember cab companies renting vehicles to drivers per day. I think the rent was the companies effective share of the rides.
      • Thlom 4y ago
        Uber sells rides at a loss. Or at least they did so.
  • ojbyrne 4y ago
    Random guess: Offices and Servers. I believe they have lots of both.