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Uber Raises Funding at $62.5B Valuation

bloomberg.com

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Re: Uber Raises Funding at $62.5B Valuation

#51

Post by gnrme »

blfr wrote: post #40
toomuchtodo wrote: post #38

Earlier quoted context omitted.

Because Uber pushes out transportation providers who do follow the rules . Hence, regulation required.

This is an argument for deregulation, not regulation. Why bother with regulation in a highly competitive market?

Regulation protects customers and workers. It ensure travellers don't get over charged compared to other forms of public transport, it makes sure the driver isn't a criminal, it ensures the vehicle is within certain standards, it prevents a free-for-all that would push the driver's income below reasonable levels.

I like the libertarian/wild west mindset of the internet. It doesn't however lend itself to integrated public transport systems - of which, private hire taxis are a part.

Plus, it is replacing local businesses with a multinational that will probably send its profits to an island (like lots of other technology companies), rather than contributing to local economies. I think it is the next Groupon though, so at some point it may pop.

Re: Uber Raises Funding at $62.5B Valuation

#52

Post by ethanbond »

blfr wrote: post #40
toomuchtodo wrote: post #38

Earlier quoted context omitted.

Because Uber pushes out transportation providers who do follow the rules . Hence, regulation required.

This is an argument for deregulation, not regulation. Why bother with regulation in a highly competitive market?

Taxis pre-regulation were highly competitive.

Each driver did his best to cut costs and raise revenue like: break traffic laws, not pay for insurance, not service their cars, not clean their cars, etc.

And since hailing a cab doesn't really give a lot of consumer choice besides what cabbie happens to be driving by at the moment, "competition" is loosely applied at best.

Pre-regulation, this would mean chances were fair that you'd enter a cab driven by a verbally abusive asshole who can't drive well, blows smoke into your face at a 15 second interval, doesn't know the city, and has basically no regard for human life or decency.

At least according to Time magazine in 1976: Modern Living: Call Me a Taxi, You Yellow Cab!

Re: Uber Raises Funding at $62.5B Valuation

#53

Post by myth_buster »

cm2012 wrote: post #34
dopamean wrote: post #21

Earlier quoted context omitted.

I can only speak for myself here but I feel like I am part of a new market that Uber and Lyft have created. I live in Austin TX and have had bad cab experiences here and so I frequently use Uber. I am from New York, however, and when I'm back there I almost never use Uber because I have no problems with getting a cab. I would be surprised if the market for cab companies in Austin is as large as the market Uber serves…

I live out in a relatively remote area of Queens in NYC and never, ever took taxis before (I would have had to call an unreliable, surly car service). Now I spend $100+ a month on Uber, which is never more than 5 minutes away.

OT, the "5 minutes" I believe is an estimation and one reason why we feel that the response is fast. As a thought experiment, if they say your car is "10 minutes" away, it would perhaps be a different experience.

Re: Uber Raises Funding at $62.5B Valuation

#54

Post by gotchange »

blizkreeg wrote: post #19

Uber is now too big to fail. Possibly the most important company this decade. I never cease to be amazed by their phenomenal execution across the world. I was in Mexico City last week where I truly came to understand the enormous impact Uber as a company has had in these past few years. The service was highly prevalent, popular, and the experience was completely seamless — just like in the US. It barely skipped a bea…

> a technology business that has a huge, real-life logistical component this fast 

What? Nearly all the big and global freight/logistics operators like DHL, FedEx, TNT et al have a huge and sophisticated tech infrastructure to service their clientele and if I dare to say more advanced and demanding than what's in Uber's possession.

Re: Uber Raises Funding at $62.5B Valuation

#55

Post by Dirlewanger »

blizkreeg wrote: post #41
mwnz wrote: post #35

Earlier quoted context omitted.

Successful for the company. Not necessarily the population.

I'd disagree with that. It is providing a means of income for many who are unemployed/underemployed. It's much better than nothing. It probably can be better, but most of these drivers aren't complaining.

They aren't complaining yet because 1. they effectively have no collective voice other than social media, and 2. this "gig" industry Uber has propelled into the stratosphere is just too relatively new to see any significant societal fallout.

Wait until we see more and more drivers whose only job is Uber no longer able to work. What do we say to the veterans who, after being rejected everywhere else due to a dearth of skills took out a car loan on a new $60k SUV to drive for Uber, only now to get injured? Who's going to take care of them? Won't be Uber, who will just be shoving the middle finger in their faces. And I don't think you can call this a strawman, given how aggressive Uber is with vets.

Re: Uber Raises Funding at $62.5B Valuation

#56

Post by jedberg »

toby wrote: post #33
MitjaBezensek wrote: post #4

That's close to Basecamps valutation :) https://medium.com/@jasonfried/press-release-basecamp-valuat...

I swore I had read this before... https://signalvnoise.com/posts/1941-press-release-37signals-...

They re-release it every time some company gets a crazy valuation based on a small investment.

Re: Uber Raises Funding at $62.5B Valuation

#57

Post by tomasien »

myth_buster wrote: post #16
tomasien wrote: post #15

Earlier quoted context omitted.

They make a ton of revenue....

They make a ton of revenue.... I was commenting on the medium article linked which said... In order to increase the value of the company, Basecamp has decided to stop generating revenue. “When it comes to valuation, making money is a real obstacle. Our profitability has been a real drag on our valuation,” said Mr. Fried. “Once you have profits, it’s impossible to just make stuff up. That’s why we’re switching to a ‘f…

GOTCHA gotcha.

Re: Uber Raises Funding at $62.5B Valuation

#58

Post by outside1234 »

dubroff wrote: post #25
matthewowen wrote: post #12

Earlier quoted context omitted.

My understanding is that Uber is currently providing new hires with RSUs, not options (so valuation growth isn't necessarily necessary). I could be misinformed.

What do you mean by "valuation growth isn't necessarily necessary"?

RSUs are actual stock. so if you get granted $100k in stock, and the stock only drops by a $1 over the course of a year, you still get $99k in stock.

less upside and less downside.

Re: Uber Raises Funding at $62.5B Valuation

#59

Post by dopamean »

toomuchtodo wrote: post #37
dopamean wrote: post #21

Earlier quoted context omitted.

I can only speak for myself here but I feel like I am part of a new market that Uber and Lyft have created. I live in Austin TX and have had bad cab experiences here and so I frequently use Uber. I am from New York, however, and when I'm back there I almost never use Uber because I have no problems with getting a cab. I would be surprised if the market for cab companies in Austin is as large as the market Uber serves…

I live in a suburb, own a shared vehicle with my wife, and never use Uber. Only the vehicle my wife and I share, a bicycle, or public transportation. Anecdotes!

Like I said, I am only speaking for myself. I didn't claim that everyone who fits the description you just described now uses Uber.

Re: Uber Raises Funding at $62.5B Valuation

#60

Post by grkvlt »

dopamean wrote: post #22
blizkreeg wrote: post #19

Uber is now too big to fail. Possibly the most important company this decade. I never cease to be amazed by their phenomenal execution across the world. I was in Mexico City last week where I truly came to understand the enormous impact Uber as a company has had in these past few years. The service was highly prevalent, popular, and the experience was completely seamless — just like in the US. It barely skipped a bea…

The most important company this decade? I'm not saying you're wrong but I have to ask... what makes Uber so important?

It's because they've replaced Facebook as the go-to company for describing your new startup. So, instead of saying 'I'm doing Facebook for gerbils' you have 'Its like Uber for buying marmalade' and so forth...
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