3 ms·

Uber is the prime example of proving the perma-bears wrong. They were a great investment for everyone but possibly the last private Softbank overvaluation. Th

Uber is the prime example of proving the perma-bears wrong. They were a great investment for everyone but possibly the last private Softbank overvaluation. Their rides have been profitable for years and are a $150 billion company after 5% rates.

refulgentis 2y ago
Exactly
TheAlchemist 2y ago
I just looked it up, and I'm not sure it can be used as an example of proving perma-bears wrong. As it is, the company is valued at $150 billions, but in the past 5 years only the last one was profitable - with a $2 billion profit. Where do you see the 'rides have been profitable for years' ? It actually looks quite wildly overvalued to me. Perma-bears will be proved wrong once the company start making real money justifying their valuation.
- reducesuffering 2y ago
  “with trips up 22% and a GAAP operating profit, for the first time in Uber’s history”[0] And I believe that was YoY profit, so profitable the year before that date and profitable the past year since. Investing in Uber Eats expansion was hampering profitability but not the rides. Before rides was profitable they were a $50b company, so if you correctly believed they would improve probability, you would’ve 3x your investment from 2 years ago. Same thing happened for those critical Facebook, Google, or Amazon could ever be profitable. [0] https://investor.uber.com/news-events/news/press-release-details/2023/Uber-Announces-Results-for-Second-Quarter-2023/default.aspx https://investor.uber.com/news-events/news/press-release-det...
Maken 2y ago
Is it really? Last time I checked around a third of their revenue came from Uber Eats, which is an separate business model they joined early on using the capital they got to develop their core business. Without that income their car ride service would still be unprofitable.
- margalabargala 2y ago
  According to my reading of their financial statement, ride sharing is more profitable than delivery. https://investor.uber.com/news-events/news/press-release-details/2024/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2023/default.aspx https://investor.uber.com/news-events/news/press-release-det...
- chatmasta 2y ago
  I use my same Uber account in nearly any country when I land at the airport. This week I paid £117 for a trip from Heathrow to my flat, and the driver got £97. Uber pocketed £20 and they weren’t even inside the car. Businesses are about cash flow, and Uber has an abundance of it. They’ve also clearly won the mindshare battle with Lyft, and are “the” ride-share app in every market. Regional providers only displace them in countries with protective regulations, and even in those places people still ask “what’s the Uber app here?” They were leading the pack, kept their lead, and now they’re running steady with nobody on their tail. The founders got them through the growth stage, with plenty of controversial behavior that helped attract the “perma bears,” who may have been right if the founders remained in charge. But ever since the suits took over the company, they’ve been fine tuning it into the money printing machine it was always destined to be.

refulgentis 2y ago

Exactly

TheAlchemist 2y ago

I just looked it up, and I'm not sure it can be used as an example of proving perma-bears wrong. As it is, the company is valued at $150 billions, but in the past 5 years only the last one was profitable - with a $2 billion profit. Where do you see the 'rides have been profitable for years' ? It actually looks quite wildly overvalued to me. Perma-bears will be proved wrong once the company start making real money justifying their valuation.

reducesuffering 2y ago
“with trips up 22% and a GAAP operating profit, for the first time in Uber’s history”[0] And I believe that was YoY profit, so profitable the year before that date and profitable the past year since. Investing in Uber Eats expansion was hampering profitability but not the rides. Before rides was profitable they were a $50b company, so if you correctly believed they would improve probability, you would’ve 3x your investment from 2 years ago. Same thing happened for those critical Facebook, Google, or Amazon could ever be profitable. [0] https://investor.uber.com/news-events/news/press-release-details/2023/Uber-Announces-Results-for-Second-Quarter-2023/default.aspx https://investor.uber.com/news-events/news/press-release-det...

Maken 2y ago

Is it really? Last time I checked around a third of their revenue came from Uber Eats, which is an separate business model they joined early on using the capital they got to develop their core business. Without that income their car ride service would still be unprofitable.

margalabargala 2y ago
According to my reading of their financial statement, ride sharing is more profitable than delivery. https://investor.uber.com/news-events/news/press-release-details/2024/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2023/default.aspx https://investor.uber.com/news-events/news/press-release-det...
chatmasta 2y ago
I use my same Uber account in nearly any country when I land at the airport. This week I paid £117 for a trip from Heathrow to my flat, and the driver got £97. Uber pocketed £20 and they weren’t even inside the car. Businesses are about cash flow, and Uber has an abundance of it. They’ve also clearly won the mindshare battle with Lyft, and are “the” ride-share app in every market. Regional providers only displace them in countries with protective regulations, and even in those places people still ask “what’s the Uber app here?” They were leading the pack, kept their lead, and now they’re running steady with nobody on their tail. The founders got them through the growth stage, with plenty of controversial behavior that helped attract the “perma bears,” who may have been right if the founders remained in charge. But ever since the suits took over the company, they’ve been fine tuning it into the money printing machine it was always destined to be.