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Uber Posts $708M Loss as Finance Head Leaves

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

#231

Earlier quoted context omitted.

> prices have to rise 6% (assuming no efficiency improvements via pool etc, which is frankly ridiculous) If Uber raises 6%, the revenue Uber will decrease. If you raise the price, simply there will be less rides because people will find alternatives such as Lyft, taxi, or even public transportations.

An irrelevant percent of people will choose to take the bus because their $10 ride is now $10.50. I agree that they are competing against Lyft on price, but they will both sooner or later have to reach break-even; neither will run at a loss forever. Rides will shift between them, but the rideshare market as a whole will shrink trivially when it does.

> they will both sooner or later have to reach break-even; neither will run at a loss forever.

This. Subsidies don't scale. When you're company does relatively few rides, you can afford to subsidize rides on the order of dollars. The more rides you do however means can only subsidize rides less and less until it has a negligible effect on a rider's decision to switch providers. At that scale, all companies will start to move away from subsidies.

Subsidies can't buy the same amount of market share at scale without losses growing linearly, which is unacceptable to investors. Subsidies will decline and should eventually disappear in mature markets even with fierce competition. Heavy subsidies really only make sense in immature markets where there is a land grab.

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

#232

Earlier quoted context omitted.

(on the assumption that your first sentence was sarcastic) Everyone does love getting middle-manned, it's why uber is successful. We had taxi services before uber, but they were unreliable and sometimes meant calling around 3 or 4 to get a cab at busy times. No accountability of where the cab was if it was late / no showed. Uber changed that and people flocked to them in their droves. Same for airbnb and basically an…

People use uber because it is cheap and easy. If taxis and other ride services roll out apps (which they are) then uber has lost its advantage in ease of use. If uber starts to feel expensive as well then they have lost everything that made them popular. Uber has to start squeezing someone for $700m a quarter. That squeeze isn't going to feel good.

That's happened though. I live in London, where black cabs are the de facto standard. They should be one of the examples of the most organised taxi 'companies' in the world - brilliant brand, effective organisation and a technically closed market and yet they have 3 major apps (gett, mytaxi(hailo), taxiapp) meaning they can't offer the same experience as uber. Black cabs also cost 4x what an uber costs for the same journey, which certainly doesn't help.

People want 1 app which does taxis - uber fits that bill pretty nicely, and to be honest, I don't think users would really notice if they bumped prices by 10%, certainly not in London.

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

#233

Earlier quoted context omitted.

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 thin…

They are growing revenue faster than their losses and they are profitable in mature markets. That sounds like a fundamentally sound business to me. The cognitive dissonance you're suffering from is the inability to believe that investors will take on losses on the order of a billions of dollars to build a profitable business. Millions of dollars are okay, but changing millions to billions and people are like "that mo…

I do not believe Uber's future value to investors is equal to the amount of money already put into it, let alone orders of magnitude higher (and "trillions" of dollars -- as you suggest -- is laughable).

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

#234

Earlier quoted context omitted.

"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.

Maybe, but "as" also can be used in place of "because or since". Here is another headline from Reuters "Uber's finance head leaves; company's quarterly loss narrows". In my opinion, both the headlines provide a different slant to the same story. P.S:- We both misspelled "causality", what a "casualty" :)

That use of "as" would require a comma: "they were free, as the case had not been proved."

P.S.: I noticed the misspelling of causality, which is was the [sic] was trying to indicate.

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

#235

Earlier quoted context omitted.

> car safety, maintenance, insurance All those laws exist for all cars, not just taxis. > fare counter requirements Classic example of over-regulation, leading to crappy service, low supply, and high prices. > mandatory drivers background check If some person is so suspect that you cannot trust them to drive you around in public while being tracked by GPS continuously, why is he not locked up? This is a bullshit made…

> If some person is so suspect that you cannot trust them to drive you around in public while being tracked by GPS continuously, why is he not locked up? This is a bullshit made-up requirement and does not prevent anything. Are you fucking kidding me? Prison sentences are usually not "for the rest of your natural life", and repeat offending is VERY COMMON . Edit: GPS tracked by a fucking iPhone app. That the driver c…

They still know exactly who was driving. In areas where impersonation by people without working papers has been a problem, they've started to make the drivers photograph themselves to prove their identity.

It's a safer system than the existing yellow cab setup - if you go missing, at least they have a pretty good idea about who did it.

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

#236
post #151

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 want companies to show a giant middle finger to monopolistic city laws that harm citizens. Just wait until a private company holds a monopoly on an essential service, especially one with a history of unethical conduct like Uber. The city laws will seem like the good old days in comparison.

You can see monopolistic behavior in some cities where the water franchise is in commercial hands (California American Water Co.). They seem to just raise rates with impunity.

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

#237
post #151

Earlier quoted context omitted.

>I want companies to show a giant middle finger to monopolistic city laws that harm citizens. Just wait until a private company holds a monopoly on an essential service, especially one with a history of unethical conduct like Uber. The city laws will seem like the good old days in comparison.

Why would uber have a monopoly? There are numerous competitors already.

You don't have to be an outright monopoly in the literal sense to cause damage. An overwhelmingly dominant position like the one Microsoft had in the past is enough.

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

#238
post #221

Earlier quoted context omitted.

The guy may be grieving but he's still an asshole. He calls it boober because of all the sex he has being the founder of it.

Assuming you actually know the guy, you should probably go say that to his face rather than anonymously talking smack on the net...

Don't be a moron. He said that in a GQ interview.

https://pando.com/2014/02/27/we-call-that-boob-er-the-four-m...

Read it and weep.

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

#239
post #38

Earlier quoted context omitted.

> If Uber raises [prices] 6%, the revenue Uber [receives] will decrease. You are assuming facts not in evidence. If you don't know Uber's price elasticity of demand, you can't predict that. It is likely that the number of rides will decrease, but, if it decreases by less than ~6%, their total revenue will increase.

It is a very competitive market. Customers are price-sensitive. I have many friends who open both Uber and Lyft and take whichever is cheaper. Right now, their prices are very close. If Uber raises 6%, their revenue will drop in my area. Besides, if it is that easy to turn a profit, Uber would have done it a while ago. A profitable business is much easier to justify under the current circumstances.

>> Customers are price-sensitive [with varying levels of sensitivity for varying aspects of the service]

That is the source of price elasticity of demand. Customers are not identical.

Some people value convenience of only checking one app more than a small price difference. Some people value the speed of getting a car and if Uber can provide a car 3 minutes faster, may be willing to pay a few percent more. Some people prefer the UX of the Uber app and how fast it is to actually compute a trip / connect to a driver compared to Lyft. Some people are submitting expense reports and would prefer to have all their car service expenses from the same provider, for convenience.

And some people don't.

Just because Uber hasn't turned a profit (which they may have, in local areas, for all we know), doesn't mean they couldn't. It's completely rational for them to price low and attract more customers if they are more able to raise capital than their competitor in order to make it harder for their competitor to stay in business.

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