Uber Raises Funding at $62.5B Valuation • Hacker News Board

Re: Uber Raises Funding at $62.5B Valuation

#61

Post by dopamean » Thu, Dec 03, 2015, 8:18 PM UTC

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.

Exactly. There is a market for people who want cabs and cant get them. Uber serves that market very well in some places AND steals market share from people who would normally take a cab.

Re: Uber Raises Funding at $62.5B Valuation

#62

Post by mlucero » Thu, Dec 03, 2015, 8:19 PM UTC

gotchange wrote: post #54

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.

I think the point he's making is that they achieved this in a much shorter time frame and they basically used cell phones to accomplish it. The companies you listed have been around for decades.

Re: Uber Raises Funding at $62.5B Valuation

#63

Post by tlrobinson » Thu, Dec 03, 2015, 8:22 PM UTC

ethanbond wrote: post #52

blfr wrote: post #40

Earlier quoted context omitted.

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 fa…

And now the internet and mobile apps has changed all that. Now consumers can pick the best service and simply download a different app, and the services themselves can weed out bad drivers by looking at their ratings.

Re: Uber Raises Funding at $62.5B Valuation

#64

Post by dsugarman » Thu, Dec 03, 2015, 8:22 PM UTC

>The number is typically calculated by annualizing a recent week, month, or quarter of the company's gross revenue, which means actual annual revenue may differ substantially.

Maybe I am reading this the wrong way but in broader context of this article it reads as they are trying to say that the actual revenue may be much lower. They should explicitly say that for a growth company like Uber, the actual revenue # would be much larger.

Re: Uber Raises Funding at $62.5B Valuation

#65

Post by toomuchtodo » Thu, Dec 03, 2015, 8:28 PM UTC

dopamean wrote: post #59

toomuchtodo wrote: post #37

Earlier quoted context omitted.

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.

I think that's my point. You previously would've used cabs, now you use Uber. Is Uber's value justified simply by the cohort of people who'd move away from using a traditional taxi service? I've been told no, that it requires a lot of people to do away with their vehicles and primarily use Uber, similar to a car share service but including the driver. I don't think that scenario is that likely to happen.

Re: Uber Raises Funding at $62.5B Valuation

#66

Post by viscanti » Thu, Dec 03, 2015, 8:28 PM UTC

dsugarman wrote: post #64

>The number is typically calculated by annualizing a recent week, month, or quarter of the company's gross revenue, which means actual annual revenue may differ substantially. Maybe I am reading this the wrong way but in broader context of this article it reads as they are trying to say that the actual revenue may be much lower. They should explicitly say that for a growth company like Uber, the actual revenue # woul…

If a company grows significantly in a year, the earnings for their most recent week would be more typical of their "size" than what they've made throughout the year. In that case, what they've made over the past year might not be a good indicator of what they'd make over the next year.

Re: Uber Raises Funding at $62.5B Valuation

#67

Post by toomuchtodo » Thu, Dec 03, 2015, 8:30 PM UTC

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.

> It's much better than nothing. It probably can be better, but most of these drivers aren't complaining.

This sounds strikingly similar to the working conditions undocumented immigrants encounter in US agriculture.

It's NOT better than nothing. In a proper first world country, you'd have a real safety net for people to fall back on instead of being exploited by shitty technology companies.

Re: Uber Raises Funding at $62.5B Valuation

#68

Post by viscanti » Thu, Dec 03, 2015, 8:31 PM UTC

Dirlewanger wrote: post #55

blizkreeg wrote: post #41

Earlier quoted context omitted.

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…

Sure. But why don't we blame literally every other company who is worse and isn't giving any better opportunity. It would be fantastic if everyone had hundreds or thousands of options and they could compete for the best opportunity, but for some people that's not the case. I'd blame every other company before I blamed the one doing the most to help provide a compelling opportunity.

Re: Uber Raises Funding at $62.5B Valuation

#69

Post by toomuchtodo » Thu, Dec 03, 2015, 8:33 PM UTC

tlrobinson wrote: post #63

ethanbond wrote: post #52

Earlier quoted context omitted.

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 fa…

And now the internet and mobile apps has changed all that. Now consumers can pick the best service and simply download a different app, and the services themselves can weed out bad drivers by looking at their ratings.

That's an extremely naive point of view about something so critical as transportation infrastructure.

Re: Uber Raises Funding at $62.5B Valuation

#70

Post by chris_va » Thu, Dec 03, 2015, 8:36 PM UTC

Funding rounds are usually preferred stock (though I hear Uber may have done some common stock in the last round, anyone know more?).

Preferred stock gets paid out first, so the actual "valuation" here is less meaningful. Preferred investors would still make a profit if Uber exited for $8B instead of 62.5B.