Uber Reveals $470M In Operating Losses

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Someone tell me again how this company thinks it's worth $50 billion?

Uber Technologies Inc. is telling prospective investors that it generates $470 million in operating losses on $415 million in revenue, according to a document provided to prospective investors.
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Because the more money they lose, the more they are worth?
 
Just because a company has an operating loss doesn't make it a bad company. Amazon in it's history has never reported a net profit.
 
I'd love to know what "Real" assets they actually have. Its not like they have huge datacenters or anything. And the workhorse is all private "contractors" who own/lease/etc their own cars.......
 
How the fuck does this company even lose money? They're a shell office while they spend next to nothing on the people who actually provide the service! They just take their cut and send you on your way to the next guy.
 
poison123 said:
I'd love to know what "Real" assets they actually have. Its not like they have huge datacenters or anything. And the workhorse is all private "contractors" who own/lease/etc their own cars.......
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None. They have an app and that's about it.
 
techrat said:
How the fuck does this company even lose money? They're a shell office while they spend next to nothing on the people who actually provide the service! They just take their cut and send you on your way to the next guy.
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Lawyers, lobbyists and subsidies to drivers in new markets.
 
techrat said:
How the fuck does this company even lose money? They're a shell office while they spend next to nothing on the people who actually provide the service! They just take their cut and send you on your way to the next guy.
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Rent seeking and protectionism.
 
SLee said:
Lawyers, lobbyists and subsidies to drivers in new markets.
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+advertising, we're getting radio ads here in the Los Angeles market, and I'm sure they're hitting many other cities across the globe.
 
mobusta1 said:
Just because a company has an operating loss doesn't make it a bad company. Amazon in it's history has never reported a net profit.
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SLee said:
It's done so in 2011 and 2013:

https://www.google.ca/finance?q=NASDAQ:AMZN&fstype=ii&ei=uBqTVanaI4anjAHGg7CABw

And it at least is not spending $2 to earn $1.
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While it's true that Amazon has never posted huge numbers in the black, it's absolutely not true that it has only reported net losses. Amazon had its first annual profit in 2003 and additional annual profits besides just 2011 and 2013.

http://www.wsj.com/articles/SB107523879334513159

http://financials.morningstar.com/income-statement/is.html?t=AMZN

More to the topic at hand, Uber is a 5 year old start-up. It's quite reasonable for a young company like Uber to have large losses, especially so given its strategy of rapid growth.
 
How can Uber not be making money? Their infrastructure is low-cost. All they do is the IT side and their "contractors" do everything else. Is it all legal fees?
 
Quix said:
How can Uber not be making money? Their infrastructure is low-cost. All they do is the IT side and their "contractors" do everything else. Is it all legal fees?
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This is what I was wondering as well.
 
techrat said:
How the fuck does this company even lose money? They're a shell office while they spend next to nothing on the people who actually provide the service! They just take their cut and send you on your way to the next guy.
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Quix said:
How can Uber not be making money? Their infrastructure is low-cost. All they do is the IT side and their "contractors" do everything else. Is it all legal fees?
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Count me as shocked. They must be spending massive amounts of money on lobbying/lawyers, etc? Even then, though, this company has spent nearly $1B dollars on...an app that should be nothing but pure profit margin? I don't f'ing get how that is possible, at all.
 
SLee said:
Lawyers, lobbyists and subsidies to drivers in new markets.
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This. Their $50B valuation is based on expected future revenue streams, which will increase as they come to more and more cities. Its a worldwide company with no barrier for entry. Think big.
 
Steve said:
Someone tell me again how this company thinks it's worth $50 billion?
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Much like the rest of the Tech companies today, exaggerated worth!

It's the major problem with modern society and the Tech industry and these idiot financial advisers creating inflation.

People use to earn money, but today in the Tech world the mind-set is to just print it when needed, if you cannot legally print the money... place an exaggerated worth on a company.
 
yomike007 said:
This. Their $50B valuation is based on expected future revenue streams, which will increase as they come to more and more cities. Its a worldwide company with no barrier for entry. Think big.
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No barrier for entry? You mean like livery laws that they are already skirting?

I'm very wary of a company whose business plan lives and dies based on skirting or changing existing law. Uber is a company with no long term plan other than hoping and praying they don't get called to account for the laws existing taxi and limo companies already contend with. The day is coming when Uber gets classified as a livery and has to get a token for every car they operate within a jurisdiction that requires one.

AirBnB is just as screwed long term...

Get in while the getting's good, but don't plan to retire on either.
 
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