The game plan is pretty simple: use VC cash to quickly provide services everywhere and build market share, drive competitors out of business / acquire them, move to self-driving cars to the extent possible and eventually raise rates when customers have no other options.
This is always brought up as the game plan but are there any examples where this worked out?
probably not. but while doing that (takes 10 years), all the execs and VCs get rich while the investing public is left holding the bag.
I can't imagine how companies like Uber, Lyft and WeWork could be sustainable in the long term with huge costs and a high burn rate, but this action is definitely in addressing the future Q2 results in the summer which is the actual results including the impact on the coronavirus outbreak. Essentially for companies like Uber and Lyft who don't focus on fast growth, VC cash raising and generating little money with hug…
The game plan is pretty simple: use VC cash to quickly provide services everywhere and build market share, drive competitors out of business / acquire them, move to self-driving cars to the extent possible and eventually raise rates when customers have no other options.
Well... yes, but the problem with that plan is that Uber would need VC funding for 20 more year while they try to make the self driving cars work.
I feel bad for the people who got fired, but I also believe is was bound to happen, the current situation with Covid-19 just speed up the process.
Dara's email was really well written, and felt as compassionate as one can for a letter from a CEO announcing job cuts. The full email: Team Uber: These have been unprecedented and challenging times for everyone—our societies, our governments, our families, our economies, all around the world. They’ve also been challenging for Uber, and many of you, as you’ve waited for us to define the road ahead. I’ve said clearly…
> I had to make this decision because our very future as an essential service for the cities of the world Any company that facilitates or provides an in-person service that has seen a sharp decline from Covid-19 is pretty clearly not an essential service in the minds of their customers.
As a counterpoint, buses/railways are imo 100% an essential service for cities and yet they were running empty during the COVID-19 lockdown where I live. I would hate to see them recategorized as non-essential because of a situation that is clearly completely abnormal.
Anyone know from the inside how this affects stock vesting and pre-IPO stock options?
Usually late stage startups switch from options to double-trigger RSUs years before they go public. I doubt anyone at Uber has unvested stock options. Assuming anyone laid off had unexercised options, they'll likely have a short window to exercise them before they expire.
Furthermore, Uber is a public company now, and there is (as far as I know) no outstanding lockout period for employees. IF anyone has outstanding options, that are subject to a (most likely) 90-day exercise window, they can be exercised and immediately sold.
The typical "exercising of an option for an illiquid asset which will be taxed as if it's liquid" problems with start-up stock options simply don't exist in this case.
Dara's email was really well written, and felt as compassionate as one can for a letter from a CEO announcing job cuts. The full email: Team Uber: These have been unprecedented and challenging times for everyone—our societies, our governments, our families, our economies, all around the world. They’ve also been challenging for Uber, and many of you, as you’ve waited for us to define the road ahead. I’ve said clearly…
Seems like a lot of cuts that needed to happen even without Covid. Common refrain for these companies is why does Company X need Y thousands of employees for a single app/website. For Uber I guess we are going to find out how much they were really needed.
Yes, pandemic is going to force companies to take action that was necessary anyway. Uber's businesses, all of them, everywhere, are garbage. There is no sense, no matter how narrow or convoluted, in which Uber has been profitable. Spare me the discussion of how their empanada delivery business in Jakarta is very healthy. Just spare me. When I was a professional investor, whenever management told me that they had a really profitable business in Uruguay or Crete or wherever I would run, RUN back to my desk and short their stock. "Big in Japan" is not. Anyway the point is Uber is the most-fucked company that ever was. They will never expand into their new Mission Bay HQ. At best, they will retreat into it, abandoning their other real estate in a continuation of the process that began when they bailed out of Oakland. This has been a long time coming for Uber and Covid-19 merely gives them the cover to do what's needed.
> How might this affect hiring in the future when they need more people "Independent contractors" working from home and using their own equipment. "Gig economy". Hope they enjoy it.
Geez, this is incredibly callous. These are real people who are losing their livelihoods.
Uber has screwed over a lot of people in the past. I'm not going to cry for people who worked for a bad company getting screwed over by said bad company
I was let go today from Uber. If anyone is looking for a Frontend/Fullstack with 7yoe. I'm here :) Find me on LinkedIn https://www.linkedin.com/in/travis-lawrence-b77400b8/
Hi, we're hiring at Poynt (https://poynt.com) – ping me at c@poynt.com