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Uber has made losses every year, and only works because it is supported by VC money: https://fourweekmba.com/uber-losses-by-year/ https://fourweekmba.com/uber-l

Uber has made losses every year, and only works because it is supported by VC money: https://fourweekmba.com/uber-losses-by-year/ https://fourweekmba.com/uber-losses-by-year/ Deliveroo, likewise: https://www.businessofapps.com/data/deliveroo-statistics/ https://www.businessofapps.com/data/deliveroo-statistics/ These are not successful companies, except insofar as they are very successful at handing out investor money.

IshKebab 3y ago
I feel like Uber's losses are deliberate at this point, like Amazon's lack of profit. If you look up their losses per journey it's something completely trivial like 50c. Uber's customers are not that price sensitive so if they really did want to make a profit they could probably just raise their prices a little bit.
- pclmulqdq 3y ago
  With Amazon, you could point to what they were spending the money on. With Uber, it's a lot less clear what they are doing other than gaining market share with discounts. They are going to lose a lot of that market share when the discounts go away.
- helsinkiandrew 3y ago
  It's actually profitable https://www.sec.gov/Archives/edgar/data/1543151/000154315123000013/uberq123earningspressrelea.htm https://www.sec.gov/Archives/edgar/data/1543151/000154315123... But I think the consensus is that (unlike Amazon) there is no more scale for them to reach which would make their business model profitable enough to justify the valuation - their only route to large profits is to destroy the rest of the competition and raise prices. "On Monday morning, an Uber from Manhattan to JFK Airport was $100—nearly double the fixed yellow cab rate. But good luck finding a yellow cab" https://slate.com/business/2022/05/uber-subsidy-lyft-cheap-rides.html https://slate.com/business/2022/05/uber-subsidy-lyft-cheap-r...
  - epolanski 3y ago
    Aren't Amazon revenues almost flat with only AWS still posting double digit growth?
  - zzbn00 3y ago
    The linked document writes: "Net loss attributable to Uber Technologies, Inc. was $157 million" The could have been profitable maybe if they didn't spend ~$400million on stock based comp!
  - samrus 3y ago
    But that won't work will it. Here in Karachi, when careem (the rideshare company uber bought) raises prices, you just have two other ride share companies (bykea, and indrive) undercut it. You can make cabs dissapear, but copycats are a paradox because you are "validating" their business model with your "success", so they will cannibalize you

IshKebab 3y ago

I feel like Uber's losses are deliberate at this point, like Amazon's lack of profit. If you look up their losses per journey it's something completely trivial like 50c. Uber's customers are not that price sensitive so if they really did want to make a profit they could probably just raise their prices a little bit.

pclmulqdq 3y ago
With Amazon, you could point to what they were spending the money on. With Uber, it's a lot less clear what they are doing other than gaining market share with discounts. They are going to lose a lot of that market share when the discounts go away.
helsinkiandrew 3y ago
It's actually profitable https://www.sec.gov/Archives/edgar/data/1543151/000154315123000013/uberq123earningspressrelea.htm https://www.sec.gov/Archives/edgar/data/1543151/000154315123... But I think the consensus is that (unlike Amazon) there is no more scale for them to reach which would make their business model profitable enough to justify the valuation - their only route to large profits is to destroy the rest of the competition and raise prices. "On Monday morning, an Uber from Manhattan to JFK Airport was $100—nearly double the fixed yellow cab rate. But good luck finding a yellow cab" https://slate.com/business/2022/05/uber-subsidy-lyft-cheap-rides.html https://slate.com/business/2022/05/uber-subsidy-lyft-cheap-r...
- epolanski 3y ago
  Aren't Amazon revenues almost flat with only AWS still posting double digit growth?
- zzbn00 3y ago
  The linked document writes: "Net loss attributable to Uber Technologies, Inc. was $157 million" The could have been profitable maybe if they didn't spend ~$400million on stock based comp!
- samrus 3y ago
  But that won't work will it. Here in Karachi, when careem (the rideshare company uber bought) raises prices, you just have two other ride share companies (bykea, and indrive) undercut it. You can make cabs dissapear, but copycats are a paradox because you are "validating" their business model with your "success", so they will cannibalize you