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They're losing money because they are aggressively expanding into new markets. They're an app and a server farm, some "driver centers", and an admin staff. An
by untog 11y ago
They're losing money because they are aggressively expanding into new markets.
They're an app and a server farm, some "driver centers", and an admin staff.
And, you know, a lot of cars and drivers. Of course Uber would want to make sure we all remember they are not Uber property and employees, but they still have to spend a lot of money to get them on board.
- alkonaut 11y agoWhat is their remaining market? Are there many countries/cities that still have easily disruptible taxi markets (e.g. "Medallions" or similar)?
- untog 11y ago4 hours ago: Uber invests $1 billion in Indian market http://money.cnn.com/2015/07/31/technology/uber-india-1-billion/ http://money.cnn.com/2015/07/31/technology/uber-india-1-bill... Yeah, there are some big markets out there yet.
- alkonaut 11y agoYes, but a market being big doesn't mean there is a lot of low hanging fruit in that market. In a market with a regulated number of cabs it's easy to see how uber can find market share (like in NYC). In a market without medallions or similar, where there is already competition among taxi companies making margins slim, I don't see how Uber can be so disruptive. Having an app, dynamic pricing, and abusing the workforce should be obvious steps already taken by existing taxi companies in those markets!
- prostoalex 11y ago> They're losing money because they are aggressively expanding into new markets. So expenses related to office space, hiring and marketing in each new market? Now, are those one-time charges that will scale overtime, or does the model call for local presence in every single market and becomes inherently unscalable?