Uber Bonds Term Sheet Reveals $470M in Operating Losses

#1

Post by dzhao » Tue, Jun 30, 2015, 3:08 AM UTC

Uber Bonds Term Sheet Reveals $470M in Operating Losses
bloomberg.com

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#2

Post by ravenkat » Tue, Jun 30, 2015, 4:38 AM UTC

This is really interesting. I believe this might be attribute to all the Uber promotions in Asia. I have heard from all my friends in India/China that Uber rides are actually free for around 10-15 rides. Also, they are giving tons of money to Drivers to promote Uber in India.

An average Uber driver in Bangalore earns 110000 INR per month where as an entry level software engineer in GOOG/AMZN in India earns 80000 INR/month.

I was shocked that one of my friends who drove Uber in Bangalore told me that he made 180000 INR two months back.

It would be interesting to know Uber's customer acquistion cost and driver acquisition cost.

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#3

Post by personjerry » Tue, Jun 30, 2015, 4:40 AM UTC

Tangential to OP: How does HN feel about the "evilness" of Uber?

At my school the general feel is that Uber is pretty evil, notably for its attitudes towards its drivers as well as towards Lyft.

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#4

Post by my-bullshit-job » Tue, Jun 30, 2015, 4:48 AM UTC

personjerry wrote: post #3

Tangential to OP: How does HN feel about the "evilness" of Uber? At my school the general feel is that Uber is pretty evil, notably for its attitudes towards its drivers as well as towards Lyft.

I didn't downvote you, but this should really be submitted as an AskHN.

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#5

Post by cheriot » Tue, Jun 30, 2015, 4:58 AM UTC

ravenkat wrote: post #2

This is really interesting. I believe this might be attribute to all the Uber promotions in Asia. I have heard from all my friends in India/China that Uber rides are actually free for around 10-15 rides. Also, they are giving tons of money to Drivers to promote Uber in India. An average Uber driver in Bangalore earns 110000 INR per month where as an entry level software engineer in GOOG/AMZN in India earns 80000 INR/…

I'm still surprised that Uber is entering such competitive markets. I mean, in much of the western world, they're using a mobile app to side step cab hailing laws and break long standing taxi oligopolies. Does anyone know what market flaws they're solving in India and Asia?

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#6

Post by [deleted] » Tue, Jun 30, 2015, 4:59 AM UTC

[deleted]

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#7

Post by [deleted] » Tue, Jun 30, 2015, 5:01 AM UTC

personjerry wrote: post #3

Tangential to OP: How does HN feel about the "evilness" of Uber? At my school the general feel is that Uber is pretty evil, notably for its attitudes towards its drivers as well as towards Lyft.

[deleted]

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#8

Post by rodgerd » Tue, Jun 30, 2015, 5:01 AM UTC

cheriot wrote: post #5

ravenkat wrote: post #2

This is really interesting. I believe this might be attribute to all the Uber promotions in Asia. I have heard from all my friends in India/China that Uber rides are actually free for around 10-15 rides. Also, they are giving tons of money to Drivers to promote Uber in India. An average Uber driver in Bangalore earns 110000 INR per month where as an entry level software engineer in GOOG/AMZN in India earns 80000 INR/…

I'm still surprised that Uber is entering such competitive markets. I mean, in much of the western world, they're using a mobile app to side step cab hailing laws and break long standing taxi oligopolies. Does anyone know what market flaws they're solving in India and Asia?

The same is true in New Zealand, where the only real requirements to be a taxi are around having a passenger endorsement to your license and police background checks.

> Does anyone know what market flaws they're solving in India and Asia?

Well the only market flaw they appear to be solving here is that they aren't hoarding more of the money in the market...

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#9

Post by chirau » Tue, Jun 30, 2015, 5:08 AM UTC

[deleted] wrote: post #6

[deleted]

Do you even understand what this means? It means they have 415M in revenue against costs of ~885M. Why is that clickbait?

Re: Uber Bonds Term Sheet Reveals $470M in Operating Losses

#10

Post by blhack » Tue, Jun 30, 2015, 5:09 AM UTC

personjerry wrote: post #3

Tangential to OP: How does HN feel about the "evilness" of Uber? At my school the general feel is that Uber is pretty evil, notably for its attitudes towards its drivers as well as towards Lyft.

I feel like most of the hatred of Uber is manufactured, and that the people who whip themselves into a frenzy over it are allowing themselves to be manipulated.