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VC's aren't trying to make public opinion, and uber makes money. Frankly, it probably wouldn't hurt their business as much as their ego to stop operating in CA

VC's aren't trying to make public opinion, and uber makes money. Frankly, it probably wouldn't hurt their business as much as their ego to stop operating in CA forever, even, since they launched here years ago and duplicated the model around the world. They would probably move their offices to NYC eventually. Anyway, we'll see if this is anything more than posturing.

aetherson 11y ago
Uber doesn't make money.
- justizin 11y ago
  They sure as hell do, they just aren't giving any back to their investors, yet, because money is pouring into their laps and they're happy to spend it. There's a difference between not being profitable and not making money, and when you're displacing an entire existing industry, you can afford to lose money while you're doing it. That's one of the hidden stories with Uber, of course, that taxi drivers give up their taxis and move to uber and that door kind of closes behind them, and the taxi companies lose share and it'll all shake out in the end is their hope. I think they're insane, but it's silly to pretend that VCs care about anything but the valuation, IMO.
  - aetherson 11y ago
    "Buying $20 bills for $21" does not constitute making money, no matter how many $20 bills you end up with. So, to be clear, I think our disagreement is fairly narrow. You suggest that the VCs care about the valuation. I agree! But: 1. Uber isn't making money. Its investors no doubt hope that it will make money at some point. But investors are not infallible, and it is entirely possible that Uber will never be profitable, or (more likely) will at some point but profitable, but not profitable enough to justify its lofty valuation. 2. That said, investors don't directly care about whether or not Uber makes money -- they care about its valuation. If Uber starts making money hand over fist, certainly that's one way for its valuation to increase, but there are others. Maybe it will go public and its current investors will cash out and then it will be revealed that robo cars kill Uber and it will crash and burn -- but still be a good investment for current investors. I don't think that's the most likely scenario, but it's possible. Anyhow, the point is, it is not now "making money," and whether it will ever "make money" in very large scales is currently unknown.

aetherson 11y ago

Uber doesn't make money.

justizin 11y ago
They sure as hell do, they just aren't giving any back to their investors, yet, because money is pouring into their laps and they're happy to spend it. There's a difference between not being profitable and not making money, and when you're displacing an entire existing industry, you can afford to lose money while you're doing it. That's one of the hidden stories with Uber, of course, that taxi drivers give up their taxis and move to uber and that door kind of closes behind them, and the taxi companies lose share and it'll all shake out in the end is their hope. I think they're insane, but it's silly to pretend that VCs care about anything but the valuation, IMO.
- aetherson 11y ago
  "Buying $20 bills for $21" does not constitute making money, no matter how many $20 bills you end up with. So, to be clear, I think our disagreement is fairly narrow. You suggest that the VCs care about the valuation. I agree! But: 1. Uber isn't making money. Its investors no doubt hope that it will make money at some point. But investors are not infallible, and it is entirely possible that Uber will never be profitable, or (more likely) will at some point but profitable, but not profitable enough to justify its lofty valuation. 2. That said, investors don't directly care about whether or not Uber makes money -- they care about its valuation. If Uber starts making money hand over fist, certainly that's one way for its valuation to increase, but there are others. Maybe it will go public and its current investors will cash out and then it will be revealed that robo cars kill Uber and it will crash and burn -- but still be a good investment for current investors. I don't think that's the most likely scenario, but it's possible. Anyhow, the point is, it is not now "making money," and whether it will ever "make money" in very large scales is currently unknown.