Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near • Hacker News Board

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#171

Post by bduerst » Sat, Feb 16, 2019, 2:09 AM UTC

alexpetralia wrote: post #110

warp_factor wrote: post #98

Earlier quoted context omitted.

This is a good summary of the VC economy: Use it as long as it is subsidized by VC Money, then switch back to whatever you used before.

Also the part about one VC passing the buck to the next, allowing them all to benefit reputationally from asset inflation - until the bubble pops. Then only the last ones holding the bag lose. Edit: VC is actually not passing to VC, but larger investment funds like PE.

In the case of unicorns that don't meet expectations, it's usually the employees who were compensated in stock or options left holding the bag, since investors try to lock in preferred payout.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#172

Post by bduerst » Sat, Feb 16, 2019, 2:11 AM UTC

reitzensteinm wrote: post #112

phamilton wrote: post #37

Earlier quoted context omitted.

> comfortable duopoly I don't think they have hit true market dynamics yet (rides are subsidized), so comfortable might be a strong word here.

Do you have a source for the ride subsidization? My understanding is that for mature markets they're making a decent profit; their losses from subsidies are from new markets, or new initiatives in existing markets (Pool, Eats etc). There have been a number of "Uber is cheaper than taxis because they are losing money" newspaper articles, but they usually point to the loss of the company as a whole.

I don't think there's clear metrics into market and price performance because they're still privately traded, and changing consistently.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#173

Post by ummonk » Sat, Feb 16, 2019, 2:14 AM UTC

justfor1comment wrote: post #69

georgeecollins wrote: post #23

I don't know what to say about this because as a lifelong value investor I cannot accept the valuation of Uber based on it's earnings. But the same logic held me back from investing in Facebook and Google, which did not make any sense to me at the moment of their IPO. How do I decide what Uber's earnings will be in five years?

Google and Facebook are ubiquitous outside the US, as well. Uber faces a lot more competition such as Lyft, Grab, Ola, Didi, GoJek. Also each one of these competitors has acquired a piece of the market. Google and Facebook were also easier to scale since they are purely software pursuits. Uber on the other hand has to deal with driver protests and government labour regulations and taxi licensing.

Well, a more apt comparison for Uber would be Amazon.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#174

Post by mandeepj » Sat, Feb 16, 2019, 2:21 AM UTC

uptownfunk wrote: post #163

I didn't see any talk of self-driving cars here. I think they're coming sooner than we think, and I suspect not having to pay drivers has been baked into the valuations by some of the firms providing those sweet sweet capital injections. I also wouldn't be surprised to see Tesla enter this space, given their advanced self-driving capability (frankly the one that has come closest to a normal consumer as myself). Re: L…

Nah! We have a long way to get to full self-driving. There are just too many variables, unpredictable conditions - to be baked into a system.

https://www.cnet.com/news/alphabet-google-waymo-ceo-john-kra...

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#175

Post by wankerrific » Sat, Feb 16, 2019, 2:43 AM UTC

Still on track to allow SoftBank and the Saudi’s to foist this steaming turd on to the retail investor.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#176

Post by stephencoyner » Sat, Feb 16, 2019, 2:45 AM UTC

blunte wrote: post #145

Maybe because I'm outside the unicorn bubble I can't see the magic, but I find something very warped about a business strategy that combines stratospheric valuation, intentional regulatory non-compliance, perpetual capital injections, service misrepresentation, and unprofessional corporate behavior... and results in massive financial losses year after year. When I try to balance the elements, it frankly looks like an…

Riders won big. The ability to order a car and get a ride in minutes is now engrained into society. Who can imagine major metros in the US without ride share? The continued capital injections and subsidized prices have been great for consumers.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#177

Post by teen » Sat, Feb 16, 2019, 2:51 AM UTC

blunte wrote: post #145

Maybe because I'm outside the unicorn bubble I can't see the magic, but I find something very warped about a business strategy that combines stratospheric valuation, intentional regulatory non-compliance, perpetual capital injections, service misrepresentation, and unprofessional corporate behavior... and results in massive financial losses year after year. When I try to balance the elements, it frankly looks like an…

Not sure how all three of drivers, Uber's profit, and passengers could all be losing. I think passengers are making out quite well atm. I haven't owned a car since Uber has been around, and get chaffeured around at a super affordable price.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#178

Post by sct202 » Sat, Feb 16, 2019, 2:52 AM UTC

rockinghigh wrote: post #124

justfor1comment wrote: post #80

Uber is getting more expensive with time as they try to consolidate losses. For my commute to work nowadays Express Pool costs the same as UberX did a year ago. And of course express pool includes overtly long sight seeing detours and dangerous pick up/drop off points. This is getting prohibitively expensive and I plan to switch to an electric scooter + public transit in a few months.

> Express Pool costs the same as UberX did a year ago This is very unlikely.

I could see it if op is including discounts. Uber and Lyft for me go thru cycles of heavy promos followed by dry spells.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#179

Post by teen » Sat, Feb 16, 2019, 2:52 AM UTC

megaremote wrote: post #138

brockwhittaker wrote: post #131

Earlier quoted context omitted.

I would normally agree but the difference could be around $5 each way for 250 work days a year. A few thousand dollars a year is quite a lot.

If you are regularly commuting via Uber you are doing a lot of things wrong.

? Been doing it for years

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#180

Post by mlthoughts2018 » Sat, Feb 16, 2019, 2:56 AM UTC

ghaff wrote: post #160

megaremote wrote: post #138

Earlier quoted context omitted.

If you are regularly commuting via Uber you are doing a lot of things wrong.

Why? If it’s an alternative to owning and parking a car in a city, it seems like something that could be a rational decision especially in the absence of good transit options.

In any city where the economics of car vs uber work out in favor of uber, then necessarily the economics of train + bus vs uber work out in favor of train + bus.