5 ms·

Uber will continue to grow in profatbility. As the platform matures and continues to grow in revenue, the overhead development cost will actually decline, not j

Uber will continue to grow in profatbility. As the platform matures and continues to grow in revenue, the overhead development cost will actually decline, not just as a percentage but as an absolute number as well. Furthermore, Lyft being borderline bankrupt helps Uber take more advantage of the most profitable and largest market.

paulpauper 3y ago
It's similar to Tesla in this regard--a decade of losses from 2010-2020 and then -boom--huge cashflow once the infrastructure outlay and customer base acquisition pays off. 'Smart money' was right all along to keep buying the dips. Uber is a play on not only on transportation, but also Ai, logistics, delivery, etc. It's like Amazon in this regard.
- ganeshkrishnan 3y ago
  Uber is just an app. Many Uber drivers have both Uber and Lyft open at the same time and choose the best one. All it takes is a new app to offer better commissions for drivers and riders. I am not so sure that Uber has a very sticky customer base
  - yakkityyak 3y ago
    I'm also not convinced uber eats will ever make money.
Sephr 3y ago
It's an app that matches drivers with riders or deliveries. There's not much to 'mature', so I doubt that they will grow much in profitability. I can absolutely see this happening for transit companies like Waymo that are still in the maturation process of developing novel infrastructure.
- Tactical45 3y ago
  Mature in a sense that Uber has invested billions in operations to get deals with cities & airports, developer legal expertise globally, and has technology that allows them to operate globally. Saying Uber is "just an app" isn't a strong argument. It overlooks the marketplace dynamics that in themselves are a huge moat. You can also say "Instagram" is just an app.. But good luck trying to recreate that level of success.

5 ms·

Uber will continue to grow in profatbility. As the platform matures and continues to grow in revenue, the overhead development cost will actually decline, not j

by Tactical45 3y ago

paulpauper 3y ago
It's similar to Tesla in this regard--a decade of losses from 2010-2020 and then -boom--huge cashflow once the infrastructure outlay and customer base acquisition pays off. 'Smart money' was right all along to keep buying the dips. Uber is a play on not only on transportation, but also Ai, logistics, delivery, etc. It's like Amazon in this regard.
- ganeshkrishnan 3y ago
  Uber is just an app. Many Uber drivers have both Uber and Lyft open at the same time and choose the best one. All it takes is a new app to offer better commissions for drivers and riders. I am not so sure that Uber has a very sticky customer base
  - yakkityyak 3y ago
    I'm also not convinced uber eats will ever make money.
Sephr 3y ago
It's an app that matches drivers with riders or deliveries. There's not much to 'mature', so I doubt that they will grow much in profitability. I can absolutely see this happening for transit companies like Waymo that are still in the maturation process of developing novel infrastructure.
- Tactical45 3y ago
  Mature in a sense that Uber has invested billions in operations to get deals with cities & airports, developer legal expertise globally, and has technology that allows them to operate globally. Saying Uber is "just an app" isn't a strong argument. It overlooks the marketplace dynamics that in themselves are a huge moat. You can also say "Instagram" is just an app.. But good luck trying to recreate that level of success.