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Uber Posts $708M Loss as Finance Head Leaves

wsj.com

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Re: Uber Posts $708M Loss as Finance Head Leaves

#171

Post by ubernostrum »

resf wrote: post #160
ubernostrum wrote: post #150

Earlier quoted context omitted.

it demonstrates that Uber's aggressive international expansion strategy is the right one. Does it? "We lose money on every customer, but we'll make it up in volume" is one of the classic ways to run a business into bankruptcy. Sometimes, taking one's time is the far sounder strategy, even if a hyper-growth competitor is "everywhere" and "dominating" in the eyes of the uninformed public.

They clearly have different objectives. Uber wants to be a huge multinational company, whereas Lyft can only hope to win the US market. In other words, even Lyft's best case scenario would be a huge step down for Uber.

No amount of "we were briefly a huge multinational" will compensate for a fundamentally unsound business.

Sooner or later the free money is going to run out and Uber is going to have to stop hemorrhaging nearly a billion dollars every quarter. When that day comes they're not going to have a lot of options to stop the bleeding: raising prices and cutting back the markets they operate in are likely to be the first things they do, or are forced to do by investors.

Meanwhile, the way you build a huge multinational is by first figuring out a way to make money and then scaling it to everywhere, not by figuring out how to be everywhere and then realizing "crap, we have to actually turn a profit now".

Re: Uber Posts $708M Loss as Finance Head Leaves

#172

Post by muse900 »

samastur wrote: post #165
dismantlethesun wrote: post #80

Earlier quoted context omitted.

True but a 6% increase overboard is practically invisible. Will you notice if you pay $7.51 one day, and 7.96 the next day? What with all the surge pricing, route changes, time of day pricing, and other schemes Uber throws at you, you're lucky to get the same price day to day.

If they are so invisible not to matter, then why aren't they higher already? Why would Uber lose money if they didn't feel like they have to?

I think there is always the factor of other apps and e.g google maps making prices easily available for comparison etc.

If Uber increases from $7.51 to $7.96 you might not see the difference in your head, but then if for example lyft is offering $7.80 for the same ride, whats more likely for you to choose?

I think they'd be very careful with increasing prices and wait their competitors to increase prices first so they can follow up, or else they might run themselvs out of business.

Re: Uber Posts $708M Loss as Finance Head Leaves

#173

Post by celticninja »

dismantlethesun wrote: post #80
objclxt wrote: post #74

Earlier quoted context omitted.

That's certainly true - things like Pool make it easier to obfuscate the cut Uber takes. But still, price rises don't just have a potential to alienate passengers, but drivers as well. If anything, drivers may well be more fickle than passengers, since someone who takes Uber once or twice a week has less to lose than someone driving for them 8 hours a day.

True but a 6% increase overboard is practically invisible. Will you notice if you pay $7.51 one day, and 7.96 the next day? What with all the surge pricing, route changes, time of day pricing, and other schemes Uber throws at you, you're lucky to get the same price day to day.

To be fair if you take an uber regularly on a regular route you know how much it is going to cost. Sure they could bump up prices when a user takes a journey they don't usually take but it is noticeable when your regular ride cost increases.

Re: Uber Posts $708M Loss as Finance Head Leaves

#174

Post by mbaha »

jpatokal wrote: post #153
Bakary wrote: post #146

Earlier quoted context omitted.

I think their point was that well-off people who travel all the time are still a tiny portion of the population.

Sure, but that tiny portion still supports the bulk of the airline and hotel industry, and (I suspect) a very disproportionate share of Uber's business.

They basically support the whole transport industry. First-class seat planes account for 10% of usage and 30% of revenue. That's huge.

Re: Uber Posts $708M Loss as Finance Head Leaves

#175

Post by phillc73 »

jpatokal wrote: post #130
beager wrote: post #109

Earlier quoted context omitted.

I believe that Lyft doesn't have to compete globally with Uber to be a successful business in its own right. I also believe that Uber isn't immune from being crippled by competitors that operate in a very small but key subset of Uber's markets. There is very little network effect with Uber. Sure, you can hop off a plane anywhere in the world and open Uber to get a car, but that is a very small number of people overal…

You're ignoring that businessmen who travel all the time are very heavy users of Uber and similar services. I'm not even a frequent flyer, but I'd estimate that a good 80-90% of my Uber usage is travel-related. At home, I have tons of other options to get around, but on a tight schedule in an unfamiliar city, I basically default to Uber all the time, because I rarely have the time or risk tolerance explore alternativ…

> I rarely have the time or risk tolerance explore alternatives.

If your goal is to save time and mitigate risk, then pre-book with a local service before you even depart. Or, as many business travelers do, ask the company/person you're meeting to arrange a car to collect you. Then you just have to look out for one of those drivers in Arrivals holding a card with your name.

Many of the international airports I've traveled to have excellent transport links to the city centre, primarily by rail. They're quick, cost effective and low risk.

I don't see a compelling reason to book with Uber on arrival.

Re: Uber Posts $708M Loss as Finance Head Leaves

#176

Post by otheotheothe »

nunez wrote: post #68
lettergram wrote: post #16

Earlier quoted context omitted.

> Uber is doing fine. Yes and no, they are in a space which is extremely price competitive. I literally am watching Uber take a dramatic hit in my area right now. Lyft came to town and probably 80% of the drivers solely use them now, driving up the Uber prices. Now, I only use Lyft - as do most of the people. Plus, most of the Uber drivers are shady here and the people think Ubers a snaky company. I realize this is a…

Uber has a solid worldwide presence. Lyft does not. You can go into nearly any state and most countries (I think all of the first world countries and a bunch of second world ones too) and book an Uber. As long as that stays true and Uber continues to grow outside of the US, Lyft doesn't stand a chance. If Lyft could light up worldwide scale right now, they absolutely would have. Something is holding them back. It's l…

Uber is really bad in SouthEast Asia, Grab is by far the most used here, especially in Singapore, Thailand and co. Uber is also useless in China... Grab just offers so much more from motorcycle rides, delivery service, payment etc...

In germany and other european countries Uber is also completly useless, they have to use local law abiding apps like MyTaxi.

So no, Uber does not have a solid worldwide presence i would say, Singapore, Germany and other are clearly what u call first world...

Re: Uber Posts $708M Loss as Finance Head Leaves

#177

Post by tomhoward »

johan_larson wrote: post #162
ewoodrich wrote: post #77

Earlier quoted context omitted.

FWIW, I still hit the paywall after clicking on the Google search result.

Yes, I don't think that trick has worked for some time.

Google doesn't seem to work anymore but Facebook does; I was able to find it and read the whole article by searching for the title in Facebook.

Re: Uber Posts $708M Loss as Finance Head Leaves

#178

Post by patrickbolle »

Uber is great, but I've relocated to Bali and the competitors here are doing such a fantastic job at giving me reasons not to use Uber.

Go-jek is cheaper, you can pay with cash, and they offer like 15 other services like... go-food, go-massage, go-cleaning, etc.

It's incredible.

Re: Uber Posts $708M Loss as Finance Head Leaves

#179

Post by matt4077 »

nocoder wrote: post #123

I like how the WSJ headline tries to imply casualty between loss and leaving of finance head. Why cannot these guys simply share the news instead of trying to imply the cause.

"as, conjunction: used to indicate that something happens during the time when something else is taking place: Frank watched him as he ambled through the crowd | as she grew older, she kept more to herself."

So they're just trying to mention both big news items in the same headline. The casualty[sic] is all in your head.

Re: Uber Posts $708M Loss as Finance Head Leaves

#180

Post by matt4077 »

dingo_bat wrote: post #86

I know most people hate on uber, but it has impacted my life a lot. I think the model they've demonstrated is a legit model, and the ruthlessness with which they pursue it should not take anything away from the company's value. In fact, it should add. I want companies to show a giant middle finger to monopolistic city laws that harm citizens.

I've heard of a few women whose life was also "impacted a lot". And I fail to see how casual sexism in the office is an adequate way to fight "monopolistic city laws".
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