Earlier quoted context omitted.
I'm sure you actually meant Avocado Toast.
No the delivery company is an infrastructure play while the toast company is scaling the b2c interfaces.
Its "Not Hotdog" all the way down.
Uber Gets Run Over by Its Own Subprime Auto Leases
91–100 of 127 posts
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#92The author mentions "sub-prime" borrowers several times but I don't see any indication that borrower quality had anything at all to do with Uber's problem. I always thought sub-prime borrowers were unfairly blamed for the mortgage crisis. There were a lot of average & prime borrowers walking away from ridiculous "nothing down, 1%" mortgages.
A house would have to be staggeringly overpriced for a 1% fixed loan with no down and no points to not make sense. Especially if they qualified for a prime rate. Hell, if I had that loan available I would totally take it and run with it.
Well, 1% loans never existed. They were just teaser rates. After a time period (say, 3 years), it would reset to awful ARM rates that the borrower couldn't possibly afford.
The loan agent: "No problem, just refi before then."
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#93Earlier quoted context omitted.
> I think this is what happens when its all funny money. Uber loses hundreds of million of dollars a quarter and yet big banks have no problem writing them a check for another billion. I'm guessing none of the banks asked what the credit facility was for or even any details about the leasing plan it was intended to fund? Details were disclosed in this article. I'd imagine the banks underwriting the loan had those det…
That certainly would be par for the course. There's been much speculation that auto leasing might be a bubble. See: http://www.zerohedge.com/news/2017-03-29/signs-auto-bubble-s... and http://usa.streetsblog.org/2017/05/01/what-comes-after-the-a...
Totally. Auto financing is really scary.
One of my dopey co-workers bought a BMW 5-series with an 84 month loan at 2%. $600/mo for 7 years for a car that will be upside down from day one.
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#94Earlier quoted context omitted.
Yet another example of VC ending up subsidizing America. We could just cut out the middleperson and go to basic income paid for by VCs.
Now, as a thought exercise: who do you think subsidizes VCs? (I.e. who are the biggest LPs) For people who don't want to look it up... Some of the biggest are pension funds! It's not just high net worth individuals or companies, it's also mom & pop retirement funds. https://www.quora.com/Who-are-the-biggest-investors-limited-...
> Now, as a thought exercise: who do you think subsidizes VCs?
Everyone who pays taxes on non-capital income.
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#95Uggh read below (edited my 1st comment after fully reading the terrible details that will hugely and negatively affect a friend)
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#96Uber is about externalizing the cost to others. It's no surprise they bleeding red once they take on the cost themselves.
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#97[deleted]
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#98This is b.s. Uber is playing hollywood with it's money. They are taking cars that are not particularly desirable, selling them to their own leasing company at full retail, collecting 4 times as much money per month than any same person would pay, earning money on every mile driven, and... I'm not sure about this one, but I _think_ they reduce the pay of the drivers who do the leases (I know Lyft does this). Then they…
I think you underestimate what a dumpster fire that group is
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#99Uggh read below (edited my 1st comment after fully reading the terrible details that will hugely and negatively affect a friend)
Also, wow my friend whose parent made him go bankrupt at 18 (put his name on deed of their house & didnt tell him) is going to lose his car he uses to make money and support/transport his family.
Whoever votes me down has no heart. Uber is run by criminals!
Re: Uber Gets Run Over by Its Own Subprime Auto Leases
#100Earlier quoted context omitted.
>Now, as a thought exercise: who do you think subsidizes VCs? (I.e. who are the biggest LPs) The Fed, with their policy of Quantitative Easing over the past 5 years.
But Fed is not just giving money for free. VCs will need to return them eventually.
The Fed isn't giving money directly to the VCs (atlest that I know of). The fed is keeping interest rates low on Treasury Bonds low. The rationale for this is: if investors get a small return on a riskless investment, they will be willing to take bigger risks for less rewards. Theoretically this should increase the investment in Venture Capital firms.