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Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

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Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#311

Post by ohwello »

Cyph0n wrote: post #114
gschier wrote: post #107

Earlier quoted context omitted.

Using a credit card builds your credit. Just remember to always pay it back (in full) on time.

Haha, you're right - I did not phrase that correctly: I use a secured CC sparingly to avoid over-utilization. In this case, I had to use my debit card.

Utilization has no lasting effect on your credit score - if you have 100% utilization one month and pay it off next month, your credit score will be the same as if your utilization was 0% the whole time. It doesn't matter for building credit in the long term.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#312

Post by Trundle »

chris_va wrote: post #294
MarkMc wrote: post #278

Earlier quoted context omitted.

There is most certainly a network effect. It's similar to eBay: Buyers and sellers can switch to another eBay clone, but they don't because there are no buyers or sellers on the clone. Similarly, nobody will download another app if it doesn't have any drivers, and drivers will not install another app if there are no riders.

I think this analogy breaks down with ridesharing services because there isn't any lock-in, and barrier to entry is low (now that Uber has plowed through the regulations). Many Uber drivers are already logged into Lyft at the same time, despite a disparity in demand.

Are there lock in withs ebay? Barrier to entry is certainly low.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#313

Post by kbart »

matt_wulfeck wrote: post #261
anexprogrammer wrote: post #258

Earlier quoted context omitted.

Quite a few of the cab firms did - many used the same app skinned for each taxi co. I forget who made it now.

Yes but you needed a different app for each taxi company. That's a terrible experience.

"Yes but you needed a different app for each taxi company."

Depends on a market I guess. Here you have a single app for all local taxi companies (actually, there are few competing apps, but you get a point), you can even select which companies do you want to use via checkboxes, because their price differs. Same centralized service works with SMS too, if you don't want to install app or have an ancient cell phone.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#314

Post by ntlk »

nimchimpsky wrote: post #211
animex wrote: post #167

Uber will be a dead Unicorn in the medium future. They've got too many legal pressures, competitors with native advantages (i.e. the automakers), and their expansion plans have them overextended. Here in Edmonton, AB, Canada, regulatory changes have pushed the Uber prices to almost 2x during non-surge times over regular taxis. Taxi's have stepped up. Local competitors have sprouted. Carshares are abounding. It's all…

conversely uber is much cheaper in uk and sydney, compared to taxis. Much more convenient, and no competitors.

There are competitors in the UK, Addison Lee and Hailo to just mention two. Plus some taxi companies make their own apps.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#315

Post by Trundle »

moxious wrote: post #207
tehlike wrote: post #172

Earlier quoted context omitted.

autonomous driving could potentially cut one of the main expenses (like the driver's fee), which could cut down prices even more, and probably get them enough of a margin to make them profitable. that's probably why it makes sense to dominate the market while they still can.

Would it be fair to call it a Hail Mary if a technology that isn't ready for the mass market is a potential savior for a company losing $2 billion per year?

To be a Hail Mary it'd need to be a last minute risky play wouldn't it? I was under the impression that Uber has been playing the "lose money on human drivers until we have robot drivers and market share" game since, if not day one, a long time ago.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#316

Post by kevinpet »

automatwon wrote: post #276
letterthief wrote: post #268

Earlier quoted context omitted.

> The Uber model has no barrier to entry If uber has no barrier to entry, neither does facebook.

Facebook has network effects. I use it because my friends use it. I don't care if my friends use Uber, if a different Taxi company offers me the same service for cheaper.

Uber is inherently a two-sided marketplace. You don't care if your friends are shopping on ebay, but you care if enough people are selling there.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#317

Post by chickenfries »

trevyn wrote: post #161
aetherson wrote: post #10

Earlier quoted context omitted.

I am not the person you're replying to, but I used to switch back and forth between Lyft and Uber and use whichever was cheaper at the moment. But Uber kept sending me drivers who were like 0.5 miles away or more, in SOMA at rush hour, and after the second time I waited ten minutes and then the driver canceled, I decided I was willing to pay a small surcharge to get a drive in less than 5 minutes and for it to, you k…

When you suspect there's going to be an issue with timeliness, just call both an Uber and a Lyft, and whichever one gets there first wins. ;) The cancellation fee only kicks in after 5 minutes.

How terrible it would be to be a driver if everyone acted like this...

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#318

Post by MarkMc »

Naritai wrote: post #296
MarkMc wrote: post #282

Earlier quoted context omitted.

Uber has network effects too. Facebook has friends, Uber has drivers. You certainly care how many drivers the Taxi company has because it affects the time you have to wait to be picked up.

This is addressed elsewhere on this thread, but I'll repeat: drivers have no compunction about having multiple apps open at the same time. Nothing ties them to Uber.

Sure, but nothing ties eBay sellers to eBay. For an Uber driver to add another Taxi app it's not just a case of downloading and installing the app. They have to create a user account, enter their bank account details, verify their email address, take a photo of themselves, their car, drivers licence and insurance documents and upload them to the Taxi app server. Then wait a day or two for it all to be processed.

If the Taxi app has a significant number of users you might convince driver's to jump through those hoops. But if the Taxi app has no users it's impossible.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#319

Post by DannyBee »

animex wrote: post #167

Uber will be a dead Unicorn in the medium future. They've got too many legal pressures, competitors with native advantages (i.e. the automakers), and their expansion plans have them overextended. Here in Edmonton, AB, Canada, regulatory changes have pushed the Uber prices to almost 2x during non-surge times over regular taxis. Taxi's have stepped up. Local competitors have sprouted. Carshares are abounding. It's all…

This all seems to assume their long term plan has anything to do with providing car service for people, which seems ... strange.

Uber really wants to be a logistics company.

Re: Uber's Loss Exceeds $800M in Q3 on $1.7B in Net Revenue

#320

Post by lsc »

paulddraper wrote: post #175
animex wrote: post #167

Uber will be a dead Unicorn in the medium future. They've got too many legal pressures, competitors with native advantages (i.e. the automakers), and their expansion plans have them overextended. Here in Edmonton, AB, Canada, regulatory changes have pushed the Uber prices to almost 2x during non-surge times over regular taxis. Taxi's have stepped up. Local competitors have sprouted. Carshares are abounding. It's all…

They still have the momentum. This isn't a start up trying to figure out how to make money (Twitter) or a company that can't/won't change (Blackberry). This is a company making money that is pursuing a blitzkrieg on the industry. They can sit back any day and rake in billions. I agree there isn't a high entry barrier, but I don't think they've lost the first-to-market advantage.

>This is a company making money that is pursuing a blitzkrieg on the industry. They can sit back any day and rake in billions. I agree there isn't a high entry barrier, but I don't think they've lost the first-to-market advantage.

The problem here is that ridership at current prices is rather higher than ridership at 2x current prices... and 2x current prices only brings you up to break-even. you want to bring that up to the point where Uber is making billions? ridership is going to fall off a cliff.

I use uber a lot mostly because it's really cheap; For five bucks? yeah, for five bucks, I'll have someone drive me to work. if that goes to $10 or $20? Yeah, I'll still use it when I go to the bar or when my car is broken or something, but for that kinda scratch I'm probably taking a shuttle, driving myself, or using a bicycle to go to work.

The point here is that Uber's competition isn't really lyft or the cab companies, it's the car I have sitting in my own driveway.

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