Uber's Still Not Profitable

I don't know which part you mean, so you might have to clarify. But I don't think they were lying about having a self-driving car program - as someone else mentioned there was a pretty famous lawsuit about this very topic. I don't really remember much about how far along they claimed to be, but it's definitely possible they exaggerated how successful their efforts were - so that could be construed as lying I guess? But it's a tough nut to crack, as evidenced by Tesla's ongoing FSD problems.

I agree with the article about Uber's accounting games, but many of the arguments about why Uber can't be successful are unconvincing.

> In Q2 alone, Uber transferred $2.8b from its drivers to its shareholders.

From a business point of view thats exactly what it should be doing. Increasing margins and paying contractors less is what a business. I understand the ethical questions about minimum wage and pay for drivers, but from a purely business POV shareholders would be happy to see wider margins.

> Today, Uber is offering much worse service at much higher prices than the traditional taxi

I disagree. Many customers use Uber cause of the user experience, trust, easy of use e.t.c there's intangible value other than the sticker price. Cabs are terrible. Driver's are mean. You have to tell them you address, whistle down a cab. Even worse, in many foreign countries you have to haggle with the drivers or stare at the meter to make sure ur not scammed. not to mention the increased risk of theft. Personally, I've had so many nightmare experiences with cabs. Many Gen Zs/Millenials don't even know what a taxi cab is or how to wave one down. The proof is in the pudding. If customers are booking Ubers even if the price is more, it means they value the Uber brand and experience.

> But sloppy drafting errors led to the California Supreme Court striking down Prop 22

Missing context. Prop 22 passed the ballot i.e people voted for it. It was later ruled unconstitutional but will still be in effect until the appeals. The gig-worker economy is too important today that something has to be done. I don't know if Uber will win these cases but eventually some legislation will come up.

> Riders who face spiraling prices will drive their own cars, or take a bus, or take a cab, or take a Lyft.

Why? The data is not indicating that. I'm writing this from a $2,000 Macbook even though I know very well a $200 PC can do the job just as well. Brand/User experience matter. If Uber cultivates a strong brand it may very well prove to have pricing power the same way people dish out cash on overpriced and often inferior Apple products. It may seem dumb that many kids are willing to pay $20 to get a $5 burger delivered to their doorstep but some people value convenience.

I'm not saying Uber will succeed but they do have an opportunity. The TAM of their business is literally in the trillions. They probably have more data on transport and logistics than anybody else.

I knew this whole space was a race to the bottom business wise the first time I had a driver rock up with multiple phones on the dash and he described how all the drivers in the area arbitrage the different companies against each other. I joked as a rider I had just done the same thing and taken the cheapest one. I certainly enjoyed my VC subsidized transportation while that craziness lasted.

I requested a cab through the local cab app here and four turned up.

I mean, I guess it worked for me.

If that were the end-goal, what's the point of operating their current business at all? Seems like a waste and entirely pointless.

And why wouldn't some other company without all the current baggage needed for operating a taxi service with human drivers be able to steal Uber's business?