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Uber Revenue Slows as Quarterly Loss Surges to $1.1B

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Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#261

Post by dreamcompiler »

zhobbs wrote: post #88
Androider wrote: post #30

Uber doesn't have much of a moat or lock-in effect. I just switched one day from being a frequent Uber rider to 100% using Lyft, simply because I don't like Uber's behavior as a company. The prices are so close it doesn't make any practical difference to me. Anecdotally, among my friends I also see Lyft becoming the default, and sometimes price-checking with Uber. If Waymo or whoever came out tomorrow with a cheaper/…

Agree that the lock-in is weak compared to other markets. Their strategy has been to incentivize drivers and riders to not split usage between other apps. Uber drivers who do a certain number of hours or rides per day/week often get bonuses, so they'd have to forego these bonuses to split time with Lyft. On the rider side, they're pulling a play from the airline playbook, with their version of frequent flier miles an…

I gave up on airline frequent flier plans (except Southwest and Alaska) decades ago. The big US-flagged airlines suck (cramped planes, consistently late flights, extra fees, treating customers like shit) and their FF plans suck too (expiring miles, too many restrictions on when you can fly).

Southwest and Alaska are a different story; they're still trying to compete. But the majors are so terrible I feel the opposite of loyalty toward them.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#262

Post by kamaal »

shubhamjain wrote: post #212
ChuckMcM wrote: post #58

That is not a happy balance sheet. They have raised over $24B, then they shifted around the cap table when Soft Bank came in[1] where they valued the company at $48B. I have never played poker where the lowest valued chips were a million dollars but it has to feel like that to senior management at the company right? And their investors, they have serious money in the pot too. It feels like they have managed to create…

At this point, I would have zero doubts about betting against Uber. The fact that company with ginormous loss continues to pursue loss-making ventures is beyond me. Food delivery was already an established market in India, and UberEats had no competitive value compared market leaders when it came--except, of course, zero delivery fees. The market itself is extremely challenging and not even the biggest companies have…

>>Food delivery was already an established market in India

Same Uber model there too.

`Eat this 500 rupees biryani for 50 rupees`

`Let me help you order this Baskin Robbins Ice cream for 80% discount`

`Diwali food festival, expensive ad on TV, Dal Maakhni at 60% discount`

These people are hoping that people will get so addicted to their app, eventually they will either stop cooking(Which ridiculous at the very face of it), or stop driving/walking up to their nearest restaurant.

Also, this luring people into using apps with discounts has max utility, its not a infinite trick you can play forever.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#263

Post by [deleted] »

dreamcompiler wrote: post #260
abrookewood wrote: post #259

Earlier quoted context omitted.

No moat? Of course it has a moat! So far Lyft has raised $1.5 BILLION dollars in order to compete [1]. Capital requirements are absolutely a barrier to entry and protect their position. [1] http://fortune.com/2017/12/05/lyft-gets-1-5-billion-funding-...

Why do these ride companies need so much capital? They don't buy cars; the drivers aren't employees. They're a mobile app with a big backend. So why do they need more capital than, say, a game company?

[deleted]

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#264

Post by freyir »

ahakki wrote: post #253
elhudy wrote: post #32

Earlier quoted context omitted.

Uber's new "cheap" pool option forces you to walk up to 5 blocks (!!) and is the same price that it used to be. Lyft's pool option doesn't make you walk and the prices have remained unchanged. Uber lost all of my (bi-daily) business when they moved to the pool express business model.

> Uber's new "cheap" pool option forces you to walk up to 5 blocks (!!) Uber is disrupting the bus service.

Uber is disrupting walking.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#265

Post by jmelloy »

femto113 wrote: post #10

Uber's been buying revenue at the cost of margin in at least two ways by shifting rides to Pool (where they can declare the entire ride's cost as revenue, not just their cut), and ramping up Uber Eats (where they take a percentage of the total cost of the food and may actually lose money on the ride). Neither strategy can continue indefinitely.

I've ordered pizza to my apartment 100 times and never had an issues, but Uber Eats drivers consistently can't find it. It's a nice service, but literally anything would be better.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#267

Post by nemo44x »

chapium wrote: post #123
nemo44x wrote: post #8

Their prices are often worse than yellow cabs in NYC. They act like locals won't be able to tell but it's pretty obvious when it's a $10 more ask at a time that isn't even busy and there are yellow cabs everywhere.

If you dont like the price, decline it. The fare is what uber thinks you will pay for the service, not some agreed upon rate by the locals.

That’s my entire point - I decline it and use another service. I didn’t do this before when they only used surge pricing and were upfront about it. This is, IMO, a very short sighted business practice. And my disuse of Uber is possibly widespread hence the massive growth shrink.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#268

Post by csin »

dreamcompiler wrote: post #260
abrookewood wrote: post #259

Earlier quoted context omitted.

No moat? Of course it has a moat! So far Lyft has raised $1.5 BILLION dollars in order to compete [1]. Capital requirements are absolutely a barrier to entry and protect their position. [1] http://fortune.com/2017/12/05/lyft-gets-1-5-billion-funding-...

Why do these ride companies need so much capital? They don't buy cars; the drivers aren't employees. They're a mobile app with a big backend. So why do they need more capital than, say, a game company?

You're not gona like this answer. They need capital because they are making loses year on year. Without the capital, they will be run out of money.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#269

Post by abrookewood »

dreamcompiler wrote: post #260
abrookewood wrote: post #259

Earlier quoted context omitted.

No moat? Of course it has a moat! So far Lyft has raised $1.5 BILLION dollars in order to compete [1]. Capital requirements are absolutely a barrier to entry and protect their position. [1] http://fortune.com/2017/12/05/lyft-gets-1-5-billion-funding-...

Why do these ride companies need so much capital? They don't buy cars; the drivers aren't employees. They're a mobile app with a big backend. So why do they need more capital than, say, a game company?

Marketing, software development and subsidised rides until market penetration takes off ... there must be more, but I'm not sure.

Re: Uber Revenue Slows as Quarterly Loss Surges to $1.1B

#270

Post by nemo44x »

sjg007 wrote: post #258
nemo44x wrote: post #244

Earlier quoted context omitted.

They charge 2 different prices at the same time for the same ride to 2 different people. And they aren’t clear about this. I didn’t say it’s a con and sometimes they charge less. But it’s certainly a practice that makes me skeptical and check out other services.

I am pretty sure that Amazon.com and Sears.com do this too.

For different locations, yes. But if my wife and I, at the same time and same location try and buy the exact same thing, we are given the same price.

This is a case of Uber using a variety of algorithms to determine just how much they can get out of you. I prefer the old surge pricing model where it was a conscious choice to overpay.

But however clever they may think they are I’m not fooled by their fake market pricing. Only now do I look for cabs and have accounts on competitors when I’m sure Uber is mispricing actual market value.

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