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Uber goes into reverse as first day stock price disappoints

theguardian.com

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Re: Uber goes into reverse as first day stock price disappoints

#41

Post by [deleted] »

kahnjw wrote: post #38
WheelsAtLarge wrote: post #34

This can't be a surprise to anyone. Given Lyfts performance, after it's IPO, the fact that UBER is not profitable and really doesn't have a near term plan to be. The stock will continue to struggle. They could follow the Amazon model to profits, get big enough to dominate the niche, but they at least need a profit engine, that would give them cash flow. It would let the company grow without having to continuously hav…

Can Uber count on being the incumbent the way Amazon did? Amazon built up physical logistics infrastructure and a subscription service that serve as a barrier to entry for competitors. Uber's only real market foothold is a network of drivers, the turnover rate of which is high. To most users, ride shares are a commodity. Savvy user's already check available services prior to booking.

[deleted]

Re: Uber goes into reverse as first day stock price disappoints

#42

Post by eldavido »

toomuchtodo wrote: post #16
eridius wrote: post #15

Earlier quoted context omitted.

Doing exactly what Uber wants isn't how you kill them. They're subsidizing the rides right now, but if everybody followed your uncle's advice, Uber would very quickly "win" the rideshare wars, establish their long-sought-after monopoly, and raise prices.

Better to support legislation that pushes the minimum wage up for rideshare and taxi drivers in top markets (see: Lyft $17/hr minimum in NYC). Faster death than trying to bleed Uber and Lyft dry through rides (which could take forever depending on investor taste for losses), and full self driving won't arrive anytime soon. Ride the populism wave.

This is silly. All this does is make it impossible for new competitors to enter, as they won't get enough riders to cover that minimum.

This is a ticket to an Uber monopoly.

Re: Uber goes into reverse as first day stock price disappoints

#43

Post by partiallypro »

tetrisgm wrote: post #2

It's going to be a wild ride. While (*most) people seem to like using Uber, headlines about how the unit economics don't work, how drivers can't make a living, how their working conditions aren't tenable keep popping up. How does Uber intend to address this? In addition, I have questions about the service's ability to grow significant multipliers. It really feels like they've reached the majority of their markets thr…

Is not just Uber, it's LYFT, neither can seem to make a profit. That kind of worries me because both are so convenient and so help people with limited income.

Re: Uber goes into reverse as first day stock price disappoints

#44

Post by manicdee »

darkarmani wrote: post #40
eridius wrote: post #15

Earlier quoted context omitted.

Doing exactly what Uber wants isn't how you kill them. They're subsidizing the rides right now, but if everybody followed your uncle's advice, Uber would very quickly "win" the rideshare wars, establish their long-sought-after monopoly, and raise prices.

> establish their long-sought-after monopoly, and raise prices. How would they keep out competition if the barrier to entry is low?

Because they can build a war chest and drop the fares below sustainable levels longer than any new entrant can bleed money.

It’s a game played to death in every other market.

Re: Uber goes into reverse as first day stock price disappoints

#45

Post by inflatableDodo »

manicdee wrote: post #44
darkarmani wrote: post #40

Earlier quoted context omitted.

> establish their long-sought-after monopoly, and raise prices. How would they keep out competition if the barrier to entry is low?

Because they can build a war chest and drop the fares below sustainable levels longer than any new entrant can bleed money. It’s a game played to death in every other market.

Large predators can get swarmed by ants in some markets. After some thought on the point my uncle was trying to get across, I suspect the hire car market is one of them. Look at the bloat of Uber. If you don't try and own the whole thing but wrote an app that gave the functionality of uber to the existing cab and hire market, you could probably run it on a shoestring.

edit - basically I think whoever works out the craigslist version of Uber will eat Uber's lunch and it is quite likely someone will.

Re: Uber goes into reverse as first day stock price disappoints

#46

Post by manicdee »

inflatableDodo wrote: post #45
manicdee wrote: post #44

Earlier quoted context omitted.

Because they can build a war chest and drop the fares below sustainable levels longer than any new entrant can bleed money. It’s a game played to death in every other market.

Large predators can get swarmed by ants in some markets. After some thought on the point my uncle was trying to get across, I suspect the hire car market is one of them. Look at the bloat of Uber. If you don't try and own the whole thing but wrote an app that gave the functionality of uber to the existing cab and hire market, you could probably run it on a shoestring. edit - basically I think whoever works out the cr…

I 100% agree with that sentiment. The only business that will survive is the one that reduces its operating costs to zero.
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