Uber Is Losing A Lot Of Money

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Is anyone surprised to learn that Uber loses a lot of money? I don't think Uber really cares as long as investors keep throwing billions at the company.

"Shock, horror, Uber makes a loss," it said. "This is hardly news, and old news at that," it added. "It's a case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors."
 
I have never been convinced of the viability of the Uber model ... companies like Netflix and Amazon can afford to lose money since they have well established business models that have some possibility of success (entertainment and retail respectively) ... the shared ride/taxi model has lots of questions on it still as well as being enormously competitive
 
This is much ado about nothing. Early stage companies ALWAYS lose tons of money. When trying to establish a customer/user base, you spend FAR more acquiring them than they spend early on. Debt is the standard position for such a company.
 
The next evolutionary step in Capitalism is making profits without profits.

We are almost there with the higher and higher levels of profits derived from extreme speculation, based on...

Doesn't matter.
 
Uber loses money? Probably due to everyone trying to sue them especially in NYC where the mayor there is just trying to push yellow cabs.
 
Uber needs to hang on in there, the yellow taxi cabs are fighting hard, but lets face it, Uber is the future and it works so damn well!
 
IMO, Uber could be doable, however legal fees from every city with a strong taxi bitchfest is probably what is harming their bottom line. I mean how much does a blanket insurance policy for the company cost? How much does it cost to run servers for the app? They don't pay for equipment, they don't pay for maintenance, it's fucking brilliant. It's like hiring a chef to run a restaurant but they need to bring their own stoves.
 
Uber's business model is actually sound, it's the legal fees that kill them. Even if Uber is taken down, something else will replace it. The current Taxi model is out of date, it's based on 1940's thinking.
 
This is surprising to me. I thought they were doing a great job convincing seniors, soccer moms, and hipsters that driving a taxi wasn't a shit low paying job where you are likely to get raped, robbed, or murdered.
 
Guys this is so standatd it isnt even news. Amazon didn't turn a profit ever until just last quarter. Uber Is spending a ton of cash on marketing and lobyests to get into new markets. Once Uber gets established revenues will go up as aqusition expenses to down. Keeping a loyal customer is 1000x cheaper than getting a new customer onboard.
 
Uber's business model is a good idea.

Unfortunately it is built on skirting regulations and the law. They will fold eventually. That and the first Uber ride that is in a major accident with high liability will hurt them.

You can't run a taxi cab and just call it something different. This is like a widget maker opening up shop next door and paying their employees cash under the table.
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.
 
UBER is getting a lot of bad publicity lately. First it was the high price of service during peak hours and then a whole slew of other issues which arent exactly UBERs problem to begin with. Taxi drivers unions or just big companies in general are likely doing all they can to run smear campaigns.

Whichever way you look at it, UBER or any other derivative if the same service will live on. Taxi service is outdated, most often times you have to wait a while until it arrives ( I am not talking about the ones you catch on the street ), and just in general cost more.
 
The current Taxi model is out of date, it's based on 1940's thinking.

Yes, it is. Uber and others need to keep challenging the law to get it changed. With enough push back from consumers and companies, the laws will change (of course, the cities and government will want their large piece of the pie).

There are a lot of things that are still using thinking from a century ago. Some need changed, others don't. Some things are based on old technology that has since been replaced but the laws are still in place that technically affect the new stuff.
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.

damn right, if they want to get paid more than minimum wage, become a successful entrepreneur or get in a field that pays well. cmon now, you expect uber drivers to make top $50,000-$70,000 a year salaries?

if you do, then you must also think that McDonalds fast food employees should be making $60,000 to cook french fries lol....
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.

This
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.

Not only corporations, many Governments are starting to subcontract work to circumvent their own hiring permanent employees. Which cost way, way too much.
 
They're worth $50 billion right now according to investors, but there is no bubble in tech stocks right now, apparently.
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.

So start a business and pay people more? Labour is a market like anything else. If people don't like what Uber's paying, they don't have to drive for Uber.
 
They're worth $50 billion right now according to investors, but there is no bubble in tech stocks right now, apparently.

Market Cap values are a little weird at the best of times but there is definitely something wrong when a ride sharing company is valued at more than FedEx and almost as much as Ford Motor ... definitely no bubble there ;)
 
Just another business trying to classify their employees as contractors so they can get around employment law.

Their business model is not profitable if they actually took care of their employees. But who cares about those people anyway.

I've seen this argument frequently lately, and I don't quite understand it. People choose to work for Uber, most of them in their spare hours, evenings, weekends, that sort of thing. They come and go. That's pretty much a perfect fit to the "contractors" model. They're not salaried, they're not even paid on an hourly basis. They can work as much or as little as they want to. In fact, let's look at the specifics of the "circumventing employment law" argument:

--Payroll taxes. These get paid either way, whether it's a W-2 employee or a 1099 contractor.
--Unemployment insurance: For a side gig? Seriously?
--Reimbursement for gas/insurance/maintenance. Duh, it's rolled into the amount you're paid.
--Keeping a percentage of tips: sounds slimy. May be slimy. But if you feel like you're not being fairly compensated, go find another job.

The folks pursuing this line of thought seem to have a serious case of buyer's (or, in this case, contractor's) remorse. "Oh no, I'm not making as much money as I thought I would. It's Uber's fault!"

Now if Uber is lying to drivers, or if their policies aren't transparent, then sure, hold their feet to the fire.
 
From my own experience, I prefer to use Uber cabs and as a service way more than yellow cabs or gypsies cabs around me. Yellow cabs are not even available in my area.

Way more convenient, but I know, change is hard on some people.
 
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