361–370 of 559 posts
Will they be doing a road show next or is this something that they would have already done prior to the filing?
Earlier quoted context omitted.
Collusion is when the parties coordinate on the price increases. If they both increase prices independently to achieve profitability, then I don't believe that to be illegal.
Even if they didn't collude, they'd be under suspicion of it. Depending on how DOJ wind blows, that could be a big and expensive distraction.
I wonder if anyone reading through this filing could speculate: Can Uber just raise their prices to reach profitability? If they lost $3B on $44.1B of Gross Bookings, it seems they could raise their prices by about 7% to hit breakeven. Would they really lose that much market share if they did that?
If Uber raises prices, they immediately lose customers to Lyft. It was always a race to the bottom and I don’t see why it would be any different now.
Earlier quoted context omitted.
I wonder about this too. What if I, as an index fund holder do not want the fund to buy up junk like lyft and uber?
The purpose of an index fund is to buy the entire market, under the assumption that an active fund will not outperform the market (after costs). If you want to avoid certain companies, you should buy an actively managed fund.
People here seem to think that Uber/Lyft do not have any competitive moat. I disagree. What we seem to forget is that just because a VC can burn boatloads of money to capture ridesharing market from Uber/Lyft doesn't mean that they would. From a game theoretic POV, Uber and Lyft have signaled that they're ready to fight for survival in markets they are established in. Unless as a startup founder you can demonstrate t…
UPDATE: Got it, self driving cars. I am not deleting the comment in case others were confused as well.
Earlier quoted context omitted.
Employees saw their share price go from $44 in June (private markets) to a range of $62-68 during the road show last month to an IPO at $72, to close today at $61. Again, in less than a year, rose from $44 to $61 with a brief uptick to $72 in the middle. How is that plummeting?
Loss aversion tells us that gains and losses have different emotional impact. In particular, perceived losses supposedly have a strong negative impact on people. [1] If Lyft employees value their shares at the IPO price, they might be feeling a loss all the way from 72 to 61. [1] https://link.springer.com/chapter/10.1057/9781137544254_13
People here seem to think that Uber/Lyft do not have any competitive moat. I disagree. What we seem to forget is that just because a VC can burn boatloads of money to capture ridesharing market from Uber/Lyft doesn't mean that they would. From a game theoretic POV, Uber and Lyft have signaled that they're ready to fight for survival in markets they are established in. Unless as a startup founder you can demonstrate t…
What's SDC? I got nothing obvious from googling it. UPDATE: Got it, self driving cars. I am not deleting the comment in case others were confused as well.
People here seem to think that Uber/Lyft do not have any competitive moat. I disagree. What we seem to forget is that just because a VC can burn boatloads of money to capture ridesharing market from Uber/Lyft doesn't mean that they would. From a game theoretic POV, Uber and Lyft have signaled that they're ready to fight for survival in markets they are established in. Unless as a startup founder you can demonstrate t…
What's SDC? I got nothing obvious from googling it. UPDATE: Got it, self driving cars. I am not deleting the comment in case others were confused as well.
People here seem to think that Uber/Lyft do not have any competitive moat. I disagree. What we seem to forget is that just because a VC can burn boatloads of money to capture ridesharing market from Uber/Lyft doesn't mean that they would. From a game theoretic POV, Uber and Lyft have signaled that they're ready to fight for survival in markets they are established in. Unless as a startup founder you can demonstrate t…
What's SDC? I got nothing obvious from googling it. UPDATE: Got it, self driving cars. I am not deleting the comment in case others were confused as well.
Earlier quoted context omitted.
In VC parlance, a "moat" means something much more than just needing money to enter the market, but an insurmountable barrier even with a lot of money.
The network effects are the moat, and it would take a lot of money to disrupt that. Any given market can't sustain more than a 2 or 3 rideshare services because splitting the network makes it too sparse for drivers and riders to match within a few seconds or minutes. Uber has the #1 or #2 spot in virtually every market. That's an economic moat if I ever saw one. https://www.investopedia.com/terms/e/economicmoat.asp
I hope your read that link, which concurs that being number 1 by a large margin is not itself a moat. A patent on the key technology is a moat. The unwillingness of everyone to switch is a moat. “They’re number 1” is not a moat.