Uber Raises Funding at $62.5B Valuation • Hacker News Board

Re: Uber Raises Funding at $62.5B Valuation

#21

Post by dopamean » Thu, Dec 03, 2015, 7:35 PM UTC

marcusgarvey wrote: post #13

chollida1 wrote: post #5

So by now Uber has raised capital and debt from: - some pretty famous angle investors - some pretty famous venture capital funds - some pretty famous investment banks - some pretty famous private equity firms - some pretty famous hedge funds - some pretty famous mutual funds It's worth asking, if they have reached the point where their success becomes less about their execution, though that's still important, and mor…

Your question about self-fulfilling prophecy is very relevant to a recent piece written by a transportation expert. Among other points he makes: >Uber-type companies need to be understood as a radical departure from Amazon/EBay type models. Instead of displacing competitors through actual efficiencies, or by creating entirely new markets, its model is entirely based on getting the world to believe that it will inevit…

I can only speak for myself here but I feel like I am part of a new market that Uber and Lyft have created. I live in Austin TX and have had bad cab experiences here and so I frequently use Uber. I am from New York, however, and when I'm back there I almost never use Uber because I have no problems with getting a cab.

I would be surprised if the market for cab companies in Austin is as large as the market Uber serves. I really cant recall the last time someone here told me they got in a cab. I think those people just drove themselves places before Uber instead of taking a cab. I certainly did.

Re: Uber Raises Funding at $62.5B Valuation

#22

Post by dopamean » Thu, Dec 03, 2015, 7:36 PM UTC

blizkreeg wrote: post #19

Uber is now too big to fail. Possibly the most important company this decade. I never cease to be amazed by their phenomenal execution across the world. I was in Mexico City last week where I truly came to understand the enormous impact Uber as a company has had in these past few years. The service was highly prevalent, popular, and the experience was completely seamless — just like in the US. It barely skipped a bea…

The most important company this decade? I'm not saying you're wrong but I have to ask... what makes Uber so important?

Re: Uber Raises Funding at $62.5B Valuation

#23

Post by dopamean » Thu, Dec 03, 2015, 7:37 PM UTC

jscottmiller wrote: post #18

prbuckley wrote: post #7

Lyft "lost $127 million in the first half of 2015 on $46.7 million in revenue, according to the documents. Lyft said last month that it has gained market share in key markets, such as San Francisco, and has a gross revenue “run rate” of $1 billion." I had no idea lyft was losing 3x the their revenue. That is crazy.

Anecdotal evidence, but I've hardly paid for a Lyft ride (aside from driver tips) for the last few months. This thanks to a long-running 50% off promotion in my area (Austin, TX, USA) and a pile of promotional credit added to my account. I wonder how much of this loss is due to these marketing efforts. Now that the promotion is over and credit depleted, my default ride app is back to Uber.

I'm in Austin and basically did the exact same thing.

Re: Uber Raises Funding at $62.5B Valuation

#24

Post by NDizzle » Thu, Dec 03, 2015, 7:37 PM UTC

Wow, we need a new monetary unit. I dub it the Lucasart, and it's worth an even $4B USD.

Uber is now valued at 15.6 Lucasarts!!! Hooray and congrats to all involved in this grounded and logical valuation!

Re: Uber Raises Funding at $62.5B Valuation

#25

Post by dubroff » Thu, Dec 03, 2015, 7:38 PM UTC

matthewowen wrote: post #12

chollida1 wrote: post #5

So by now Uber has raised capital and debt from: - some pretty famous angle investors - some pretty famous venture capital funds - some pretty famous investment banks - some pretty famous private equity firms - some pretty famous hedge funds - some pretty famous mutual funds It's worth asking, if they have reached the point where their success becomes less about their execution, though that's still important, and mor…

My understanding is that Uber is currently providing new hires with RSUs, not options (so valuation growth isn't necessarily necessary). I could be misinformed.

What do you mean by "valuation growth isn't necessarily necessary"?

Re: Uber Raises Funding at $62.5B Valuation

#26

Post by [deleted] » Thu, Dec 03, 2015, 7:38 PM UTC

chollida1 wrote: post #5

So by now Uber has raised capital and debt from: - some pretty famous angle investors - some pretty famous venture capital funds - some pretty famous investment banks - some pretty famous private equity firms - some pretty famous hedge funds - some pretty famous mutual funds It's worth asking, if they have reached the point where their success becomes less about their execution, though that's still important, and mor…

[deleted]

Re: Uber Raises Funding at $62.5B Valuation

#27

Post by marcusgarvey » Thu, Dec 03, 2015, 7:39 PM UTC

gmarx wrote: post #17

marcusgarvey wrote: post #13

Earlier quoted context omitted.

Your question about self-fulfilling prophecy is very relevant to a recent piece written by a transportation expert. Among other points he makes: >Uber-type companies need to be understood as a radical departure from Amazon/EBay type models. Instead of displacing competitors through actual efficiencies, or by creating entirely new markets, its model is entirely based on getting the world to believe that it will inevit…

I think they are creating a new market. People now use Uber in situations in which they never would have thought to take a cab. That is not to say this valuation makes sense

Perhaps so, but how substantial is that compared to the market of people who are just using Uber as a more convenient and reliable cab? Surely the latter is the vast bulk of their business.

Re: Uber Raises Funding at $62.5B Valuation

#28

Post by rdtsc » Thu, Dec 03, 2015, 7:39 PM UTC

prbuckley wrote: post #7

Lyft "lost $127 million in the first half of 2015 on $46.7 million in revenue, according to the documents. Lyft said last month that it has gained market share in key markets, such as San Francisco, and has a gross revenue “run rate” of $1 billion." I had no idea lyft was losing 3x the their revenue. That is crazy.

Because most people Uber...?

It became a "verb" and well, here we know what that means: "xerox that paper", "google this term"... Nobody is Lyft-ing and everyone is Uber-ing. Once it's verbified, it's hard for competitors to overcome it.

I, for one, have used neither. But I have friends and family who travel a lot. Some are in their 20s, 30s, and some in the 60s and they all say they Uber places vs taking a taxi. They don't know about Lyft-ing.

Now what is the underlying reason for that. Maybe luck, maybe time to market, maybe pricing, I can't tell you.

Re: Uber Raises Funding at $62.5B Valuation

#29

Post by sbov » Thu, Dec 03, 2015, 7:40 PM UTC

chollida1 wrote: post #5

So by now Uber has raised capital and debt from: - some pretty famous angle investors - some pretty famous venture capital funds - some pretty famous investment banks - some pretty famous private equity firms - some pretty famous hedge funds - some pretty famous mutual funds It's worth asking, if they have reached the point where their success becomes less about their execution, though that's still important, and mor…

In other words, Uber has the connections to unduly influence the government in a way to make sure they survive. Which is kinda the reason why people want things like taxi companies to fail. So is this a good or bad thing?

Re: Uber Raises Funding at $62.5B Valuation

#30

Post by gmarx » Thu, Dec 03, 2015, 7:41 PM UTC

marcusgarvey wrote: post #27

gmarx wrote: post #17

Earlier quoted context omitted.

I think they are creating a new market. People now use Uber in situations in which they never would have thought to take a cab. That is not to say this valuation makes sense

Perhaps so, but how substantial is that compared to the market of people who are just using Uber as a more convenient and reliable cab? Surely the latter is the vast bulk of their business.

currently but I can foresee a time when it is so convenient to hail a car that a lot of people just forgo car ownership entirely. Think of a future in which self driving cars work well and you can use your phone to get one to wherever you are within 10 minutes, get dropped off anywhere, never worry about parking and it costs far less than car ownership.