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The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. Both through scale a

by jjeaff 3y ago

The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. Both through scale and advances in technology. Which is true. But rarely true to the extent to which they believe it.

bananapub 3y ago
> The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. did you not read the article? the entire thing premise is that is not true and there are negative externalities and incentives even if the company doesn't ever make a profit.
- qwytw 3y ago
  Well to be fair Uber is almost profitable at this point (just -1.78% net margin) so if they actually wanted to they could be profitable in a quarter or two..
pydry 3y ago
It's a bet not a lie, theyre betting that they can squeeze out competition and jack up ride prices and jack down wages. It's a rather sickening bet though. One would hope they'd lose.
nobody9999 3y ago
>The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. Both through scale and advances in technology. Which is true. But rarely true to the extent to which they believe it. Uber and other folks who sell whatever it is they sell at a loss -- with no real expectation (other than driving their competition out of business so they can then hike prices well beyond where those who can actually make a profit charge) always reminds me of this[0]. The ridiculous part is that the link below was a parody when created. Now it's a "business model." Sigh. [0] https://www.youtube.com/watch?v=KodqIPMbyUg https://www.youtube.com/watch?v=KodqIPMbyUg
hgomersall 3y ago
Uber aren't selling taxi rides, they're selling shares in Uber, which is actually what the investors care about. The bezzle will continue as long as they can convince people there's a path to profitability.

by jjeaff 3y ago

bananapub 3y ago

> The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. did you not read the article? the entire thing premise is that is not true and there are negative externalities and incentives even if the company doesn't ever make a profit.

qwytw 3y ago
Well to be fair Uber is almost profitable at this point (just -1.78% net margin) so if they actually wanted to they could be profitable in a quarter or two..

pydry 3y ago

It's a bet not a lie, theyre betting that they can squeeze out competition and jack up ride prices and jack down wages. It's a rather sickening bet though. One would hope they'd lose.

nobody9999 3y ago

>The only issue is that companies like Uber are lying to themselves and their investors that costs will go down significantly in the future. Both through scale and advances in technology. Which is true. But rarely true to the extent to which they believe it. Uber and other folks who sell whatever it is they sell at a loss -- with no real expectation (other than driving their competition out of business so they can then hike prices well beyond where those who can actually make a profit charge) always reminds me of this[0]. The ridiculous part is that the link below was a parody when created. Now it's a "business model." Sigh. [0] https://www.youtube.com/watch?v=KodqIPMbyUg https://www.youtube.com/watch?v=KodqIPMbyUg

hgomersall 3y ago

Uber aren't selling taxi rides, they're selling shares in Uber, which is actually what the investors care about. The bezzle will continue as long as they can convince people there's a path to profitability.