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Lending Club plans layoffs, discloses loans to former CEO and family members

latimes.com

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Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#51
post #19

Earlier quoted context omitted.

I have been able to pick up a phone and call the cab company for decades.

yeah, but unless you're in a city like New York (possibly a handful of others) the wait is FOREVER. In Phoenix it was routine to have to wait half an hour or more. Same in SLC. It's awful. Uber and Lyft reduced the wait to a fraction of the time with better, quicker and cheaper service.

This complaint makes no sense to me. You just call the taxi company further in advance of when you need the ride. If you know it's always around a 30 minute wait, just call 45 minutes ahead of time and tell them the time you need picked up.

Phoenix & SLC are also not cities in which people are likely to rely on on-demand ride sharing. Most people own their own car especially if they care about being able to determine exactly when they engage in transiting.

Further, in all of the non-mega / non-already-has-developed-rapid-transit-system cities I've been in, apart from one single city (San Francisco), the wait time for Uber is on the order of the wait time for a taxi. The difference between needing to call or book ahead to avoid a 30 minute wait vs. a 15 minute wait is utterly irrelevant.

The real reason why Uber succeeds in these markets is that they currently subsidize the rate paid to the drivers and thus compete on price. They also have way better marketing and do a good job of making people think the market for Uber rides is more liquid than the market for taxi rides (though in truth it's not more liquid except in dense areas).

Uber is not profitable in these areas, and is just hoping it can subsidize the losses on most decentralized transit regions long enough to defeat regulatory issues, outlast competitors, and put pressure on taxi services. It's still quite a significant gamble.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#52

Earlier quoted context omitted.

"Tesla is just growing off of government subsidies!" etc.

No, making cars was never outright illegal. Operating a cap company, (or rather an illegal one), without proper licensing was. Operating a hotel out of your house was. Nice strawman.

Uhhh it was basically illegal to make cars in the US from ~1903 to 1911 due to restrictive licensing policies aimed at excluding competitors from the market: https://en.wikipedia.org/wiki/Association_of_Licensed_Automo...

Ford Motor Co produced cars without such a license and eventually a case went to court. Ford initially lost but then the ruling was overturned.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#53
post #2

As someone who built the most popular iOS / Android app for Lending Club investors [0], I can tell you that since the CEO resigned - New users have fallen by 50% per month, although of course users to my app are a fraction of total new users, but you can extrapolate - Total net, users are withdrawing about as much money as users are putting in - The amount of loans purchased has dropped significantly So without a dou…

If I may ask, how well is the app doing? You have good revenues?

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#54

Other than investing in their stock, there's an argument to be made that it might actually be a relatively safe time to invest in their loans.

Default rates have just hit their lowest point in eight years:

https://www.federalreserve.gov/releases/chargeoff/delallsa.h...

From this halcyon point, there's more downside risk than upside going forward. Unless the cyclical nature of debt defaults suddenly stopped after centuries.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#55
post #19

Earlier quoted context omitted.

I have been able to pick up a phone and call the cab company for decades.

yeah, but unless you're in a city like New York (possibly a handful of others) the wait is FOREVER. In Phoenix it was routine to have to wait half an hour or more. Same in SLC. It's awful. Uber and Lyft reduced the wait to a fraction of the time with better, quicker and cheaper service.

I've spent plenty of time waiting for my Uber as well: lots of "your car is 5 minutes away for 15 minutes".

Uber isn't as brilliant as they want us to believe they are.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#56
post #3

In just world this would result in a prison sentence, banishment from stock exchanges, and revocation of their corporate charter. The fact that there is no capital punishment for companies, especially public ones, provides a moral hazard.

> capital punishment for companies That's the second time today I see this, is this some kind of meme?

Yes, but it's been around for years.

If corporations are persons, and they can commit felonies, why not give them punishments that are analogous to what you'd give a person who committed a felony?

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#57
post #29

Earlier quoted context omitted.

For me still this equation holds true. Taxes are abundant and cheap in Singapore. Riding in someone's car makes me uncomfortable. (But that is just me, I suppose)

The success of Uber in a city is directly proportional to how much taxis suck in that city. So Singapore is one of a few cities where that's the case (NYC also -- Uber doesn't really work there. I was there for 8 days and requesting an Uber as a 10-15 minute wait. You can get into one of a million cabs that go by in that time. I gave up).

Same with Hong Kong, Uber have started up there but I think they will struggle.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#58

Earlier quoted context omitted.

No, making cars was never outright illegal. Operating a cap company, (or rather an illegal one), without proper licensing was. Operating a hotel out of your house was. Nice strawman.

Uhhh it was basically illegal to make cars in the US from ~1903 to 1911 due to restrictive licensing policies aimed at excluding competitors from the market: https://en.wikipedia.org/wiki/Association_of_Licensed_Automo... Ford Motor Co produced cars without such a license and eventually a case went to court. Ford initially lost but then the ruling was overturned.

[deleted]

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#59

Earlier quoted context omitted.

> capital punishment for companies That's the second time today I see this, is this some kind of meme?

Yes, but it's been around for years. If corporations are persons, and they can commit felonies, why not give them punishments that are analogous to what you'd give a person who committed a felony?

> If corporations are persons, and they can commit felonies, why not give them punishments that are analogous to what you'd give a person who committed a felony?

Because corporate personhood is a legal fiction, and a corporate death penalty doesn't really hurt the people who a corporation stands in for very much, and hurts lots of other people a lot.

Re: Lending Club plans layoffs, discloses loans to former CEO and family members

#60
post #48
post #9

Earlier quoted context omitted.

People have dreamt about on-demand car hailing for a long time, but it's always been a pipe dream - building the two-sided network is such too hard and too expensive, and a small network is just not worth using as a consumer. How is this not innovation?

Most of the innovation there was in the cell phone[1]. You've been able to order a car by phone in major metros for longer than those have been around. In fact, Uber started off as an app for using those very services. Props to Uber for execution, but all the pieces were there. [1]-edit: some in the smartphone, but most in the old "makes calls" cell phones

The older I get the more I realize execution is simply all that matters.

A zillion people had the same basic idea for Uber. They made it a reality, and made it Not Suck(tm).

The user experience prior to Uber for ordering a car via phone was absolutely horrific.

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