4 ms·

How would we not be in a bubble? Uber is valued at $50 billion, but the legality of what they do is tenuous at best. Big cities all over the country could smack

by cp9 11y ago

How would we not be in a bubble? Uber is valued at $50 billion, but the legality of what they do is tenuous at best. Big cities all over the country could smack them down at a moment's notice, or at the very least drag them into expensive litigation that could take years. Airbnb faces the same problem. You can say this is what "disruption" is all about, but all I see are fields of tulips

stephengillie 11y ago
Uber's valuation is an advertisement. If they try to use most of that $50 billion, they'll run into a restriction of some kind, and have to pay it back. The investor will get their $50 billion back, in one way or another. Their actual valuation is much lower. Announcing this big number does the advertising for them, the recruiting for them, and it even writes the press release for them. It's amazing what a very large amount of money can buy. You don't even have to spend it.
- adventured 11y ago
  What $50 billion would the investor be getting back? Nobody is or has invested $50 billion into Uber. And no investor will be getting their money back due to 'restrictions of some kind.' That is not legally how investing works, not even remotely close. The investors own part of Uber, they are the ones committed to Uber's business model (which they bought into). They are assuming risk like any other investment. If Uber fails, they'll liquidate the skeleton that remains, and get pennies on the dollar (if they're lucky), there isn't going to be billions sitting in a bank account waiting to be recovered.
  - stephengillie 11y ago
    Okay, so there is no $50 billion. It's entirely advertisement, entirely fake. It still streamlines recruiting, business operations, and press releases.
JonFish85 11y ago
What I really don't understand about Uber's legality issues is just how it is that their investors are able to get away with investing in that business. At some point if these lawsuits start taking a toll, shouldn't there be some sort of litigation around their investors who knowingly invested in a company doing some legally questionable things? It happened to people who invested with Bernie Madoff; if you were getting outsized returns (e.g. the Wilpon family), there were clawbacks. Shouldn't the same apply if/when Airbnb and Uber start losing in court? Start fining the investors who clearly knew that the companies were living on the edge, legally speaking? What about the $1.5bn that Uber is trying to get from a bank? Don't banks have to do a LOT of due diligence into businesses they are doing loans from? I can't imagine the "waste management" companies run by the Mob can get a huge loan from banks, even if they can pay a premium in interest charges. Why can Uber?
adventured 11y ago
Money solves most of Uber's problems in the legal realm. In fact, the pacification of the taxi industry in the US has already occurred, they've rolled over. It's almost always easy to vanquish fractured, poorly organized competition when it comes to politics. There will be no major challenge to Uber's overall business in the US. Within another three years, the US taxi industry will be so decimated as to no longer pose any threat. Uber will suffer a few slaps on the wrist, and they'll say they're sorry and fork over some fines, and that is all that is going to happen.
- toomuchtodo 11y ago
  Uber has already been banned in several major metros, and continues to have restrictions placed on it. You can't out-innovate they who control the roads.

by cp9 11y ago

stephengillie 11y ago

Uber's valuation is an advertisement. If they try to use most of that $50 billion, they'll run into a restriction of some kind, and have to pay it back. The investor will get their $50 billion back, in one way or another. Their actual valuation is much lower. Announcing this big number does the advertising for them, the recruiting for them, and it even writes the press release for them. It's amazing what a very large amount of money can buy. You don't even have to spend it.

adventured 11y ago
What $50 billion would the investor be getting back? Nobody is or has invested $50 billion into Uber. And no investor will be getting their money back due to 'restrictions of some kind.' That is not legally how investing works, not even remotely close. The investors own part of Uber, they are the ones committed to Uber's business model (which they bought into). They are assuming risk like any other investment. If Uber fails, they'll liquidate the skeleton that remains, and get pennies on the dollar (if they're lucky), there isn't going to be billions sitting in a bank account waiting to be recovered.
- stephengillie 11y ago
  Okay, so there is no $50 billion. It's entirely advertisement, entirely fake. It still streamlines recruiting, business operations, and press releases.

JonFish85 11y ago

What I really don't understand about Uber's legality issues is just how it is that their investors are able to get away with investing in that business. At some point if these lawsuits start taking a toll, shouldn't there be some sort of litigation around their investors who knowingly invested in a company doing some legally questionable things? It happened to people who invested with Bernie Madoff; if you were getting outsized returns (e.g. the Wilpon family), there were clawbacks. Shouldn't the same apply if/when Airbnb and Uber start losing in court? Start fining the investors who clearly knew that the companies were living on the edge, legally speaking? What about the $1.5bn that Uber is trying to get from a bank? Don't banks have to do a LOT of due diligence into businesses they are doing loans from? I can't imagine the "waste management" companies run by the Mob can get a huge loan from banks, even if they can pay a premium in interest charges. Why can Uber?

adventured 11y ago

Money solves most of Uber's problems in the legal realm. In fact, the pacification of the taxi industry in the US has already occurred, they've rolled over. It's almost always easy to vanquish fractured, poorly organized competition when it comes to politics. There will be no major challenge to Uber's overall business in the US. Within another three years, the US taxi industry will be so decimated as to no longer pose any threat. Uber will suffer a few slaps on the wrist, and they'll say they're sorry and fork over some fines, and that is all that is going to happen.

toomuchtodo 11y ago
Uber has already been banned in several major metros, and continues to have restrictions placed on it. You can't out-innovate they who control the roads.