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Uber Posts $5.2B Loss and Slowest Ever Growth Rate

nytimes.com

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Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#51

Post by ikeyany »

dman wrote: post #13
rainyMammoth wrote: post #8

Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…

Could you elaborate how much were fares before they removed subsidies and after?

When they first started out in my city they offered a ride pass that put a hard limit on rides less than 20 miles at $4. Yes, $4 for anywhere within 20 miles.

Then it was changed to $5. Then it was changed to $6, or instead you could UberPool for $2. Then they added a 2 minute waiting period for an UberPool. They then also changed the flat fare altogether and instead your ride pass came with something like 50% off all rides, with a maximum $6 discount.

It's obvious what would happen. At least my friends and I got it while the getting was good.

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#53

Post by toasterlovin »

_bxg1 wrote: post #28

Fully self-driving cars hit a wall (no pun intended), and that was their only story for eventual profitability. Not surprising.

FWIW, I don’t think self driving cars would have made them a good business. Once you no longer need drivers, all you’re doing is deploying a fleet of automobiles. We already have companies that do this: taxi services and auto rental companies. They’re shitty, low margin businesses with tons of competition. The promise of Uber was being a monopoly because they were first mover on a market with network effects. Much like eBay. But self driving cars remove the network effect inherent in needing to attract both drivers and riders.

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#54

Post by bluetidepro »

arrozconcosas wrote: post #45
bluetidepro wrote: post #19

Earlier quoted context omitted.

I can't speak to SF, but here in Chicago, they have been gradually getting higher each year. I have consistently taken an Uber to work every morning for about 5 years now, and I used to pay $5-7 for the ride, but now it is $9-12. I will say though, the huge benefit now is their rewards have a "price protection" [1] for some tiers that allow for a cap on that ride price, so I think it can no longer go above $10.99 or…

Same experience here, also in Chicago. I take the bus now it’s much cheaper.

Yeah, I take the bus/CTA home everyday, but still love my morning Uber rides. Haha Just so much easier, and I hate being all hot and sweaty from the bus or CTA when I get to work in the morning. ¯\_(ツ)_/¯

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#55

Post by [deleted] »

catacombs wrote: post #23
rainyMammoth wrote: post #8

Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…

> among my friends we all stopped using Uber (unless we really have to). It simply became way too expensive. What's been the alternative? Regular taxis? Aren't they just as expensive?

[deleted]

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#56

Post by Animats »

Remember that article yesterday about the company that resold movie tickets at a loss to gain market share? That's Uber's business model.

(Self driving cars were never going to save them. Not only do they not work yet, there's no reason to think they'd be much cheaper for years to come. Uber would have to pay for them, garage them, maintain them, operate control centers, etc. They'd be in the car rental business, which is not hugely profitable. Uber's business model is to dump their operating costs on their drivers. With self driving cars, they couldn't do that.)

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#57

Post by arrozconcosas »

izzydata wrote: post #33
bluetidepro wrote: post #19

Earlier quoted context omitted.

I can't speak to SF, but here in Chicago, they have been gradually getting higher each year. I have consistently taken an Uber to work every morning for about 5 years now, and I used to pay $5-7 for the ride, but now it is $9-12. I will say though, the huge benefit now is their rewards have a "price protection" [1] for some tiers that allow for a cap on that ride price, so I think it can no longer go above $10.99 or…

That seems more expensive than owning a car. Assuming 5 workdays a week and 2 rides per day then that is 40 rides a month on average which could be anywhere from $360 to $480 a month.

How much is the total cost of owning a car in Chicago? Including gas, parking, insurance, maintenance and consumables, depreciation/lease, etc?

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#58

Post by smileysteve »

Tiktaalik wrote: post #24

The recent realization by cities that these services are making traffic worse will induce more regulation which will make these services even less viable than they already are.

As rides get more expensive or as these companies run lower on cash to burn; I suspect we'll eventually get back to the traffic reduction use case; an easy way to make a buck driving a route you're otherwise already taking or just a few miles from your house.

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#59

Post by Finbarr »

dman wrote: post #13
rainyMammoth wrote: post #8

Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…

Could you elaborate how much were fares before they removed subsidies and after?

I used to commute from San Mateo to San Francisco on Uber Pool for ~$10 each way. Same service is >$20 now.

Re: Uber Posts $5.2B Loss and Slowest Ever Growth Rate

#60

Post by xvedejas »

catacombs wrote: post #23
rainyMammoth wrote: post #8

Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…

> among my friends we all stopped using Uber (unless we really have to). It simply became way too expensive. What's been the alternative? Regular taxis? Aren't they just as expensive?

In my case, since nobody else has replied with public transit: SF has a really great bus system that, if you're traveling along any of the frequent lines with bus lanes, is usually the same speed as an uber once you factor in the wait. It's just $2.50 for 3 hours of free transfers, and 24/7 service.
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