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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

#61

Post by rescbr »

xapata wrote: post #20
quickben wrote: post #13

Earlier quoted context omitted.

Well, about (2). Taxi got a bit cheaper. Also for peak times people use them to dodge surge pricing. It's equalizing.

Where have taxis gotten cheaper? Nowhere I've visited over the last few years.

At least in São Paulo the taxis took a lesson from Uber and improved their service, created a premium service that isn't more expensive, taxi hauling apps introduced reduced fares, that the drivers can choose whether to accept or not.

Outside peak hours (and on the intl airport which isn't São Paulo proper) I still find Uber more convenient/cheaper, but otherwise they have a tough competition with taxi services.

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

#62

Post by jpatokal »

duaneb wrote: post #25
fbreduc wrote: post #23

Earlier quoted context omitted.

sure it should

Why? It appears to have no value to anyone but the immediate consumer. That's not a business, it's a charity. What a collossal waste of cash.

Drivers getting paid above the market and riders getting rides below the market would disagree. If anything, it's a bizarre kind of socialism: rich venture capitalists voluntarily redistributing their wealth to the public.

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

#63

Post by Cyph0n »

wapz wrote: post #52
ra1n85 wrote: post #21

Earlier quoted context omitted.

When you're so broke that an extra couple of dollars will put you in overdraft territory, it's not reasonable. At least they inform you in most hotels. I have not used Lyft - I would hope they do the same.

Not to sound rude but someone who's that short on cash might be better off going by public transit, walking, or using a bicycle.

I use public transport for my daily commute. I use Uber for shopping 2 or 3 times per month, and only on the way back. I think it's tough to save more than that.

Any tips would be appreciated of course.

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

#64

Post by andrewksl »

revelation wrote: post #48
rubicon33 wrote: post #33

Earlier quoted context omitted.

Huh? What's the end game? The end game is a company with self driving cars, having SIGNIFICANTLY less overhead than they currently do with human drivers. And, probably a ton of technology patents to boot? Yea, they're definitely a brazen company, but do you really expect anything less from a unicorn company? Very few make it this big without cutting some corners, having some connection, etc.

In this particular iteration of the game, what exact benefit does running a $800M losing ride-hailing service confer? If the entire value proposition is "taxi using self-driving cars", then surely they would be much better off dropping the money burning ride-hailing operation with cars they don't own to spend more on R&D...

> what exact benefit does running a $800M losing ride-hailing service confer

Market share. Or more precisely, establishing market dominance by undercutting the competition.

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

#65

Post by Retric »

quickben wrote: post #35
xapata wrote: post #20

Earlier quoted context omitted.

Where have taxis gotten cheaper? Nowhere I've visited over the last few years.

Toronto. I haven't taken a taxi forever, but I believe they start at $3.25 (city council orders) as opposed to Uber at $2.5.

The math does not seem to work out for them.

(1.7b / 0.8b + 1.7b) = 68% of their costs. 3.25 * 0.68 = 2.21$, but Uber charges more than that and would like some profit. aka Uber has higher costs than cab companies making them a long term dead end.

Sure, they are probably subsidizing other markets more, but even then that are gong to run out of money long before the self driving car thing takes off.

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

#66

Post by jplasmeier »

mindcrime wrote: post #49
antiviral wrote: post #6

Uber is making the rest of us in SV look terrible. 1. Collect a huge pile of money at sky-high valuations from those who really should know better. 2. Ignore any sensible unit economics and undercut local taxi/transport services until those small businesses go bankrupt since they don't have Uber's money pile. 3. Evade local regulations that everyone else follows in the name of 'innovation' even though the reality is…

Evade local regulations that everyone else follows in the name of 'innovation' even though the reality is they are just taking a free pass on conducting background checks, and skipping safety guidelines. When they replace all taxis, do they really think they can just permanently ignore all driving laws? Since when do hackers bleat about obeying laws and regulations? What happened to having a "we can do better" mindse…

Somewhere in between "Since when do hackers bleat about obeying laws and regulations?" and "I want a nanny state to protect me 24/7" exists a middle ground where people realize that government regulation exists for a reason. You can't just throw away the law for the sake of your definition of progress...

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

#67

Post by ylhert »

mgraczyk wrote: post #53
Analemma_ wrote: post #43

Earlier quoted context omitted.

It might come from the fact that they ragequit Austin rather than do background checks.

Uber was already doing background checks in Austin. They quit in protest of a requirement that drivers be fingerprinted and forced to drive around with Uber decals on their cars.

Correct

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

#68

Post by mattnewton »

realstuff wrote: post #8
LeoPanthera wrote: post #5

Earlier quoted context omitted.

Lyft may be more expensive on paper but I always use it instead of Uber where it is available and they send me so many discounts and coupons that I almost never pay the full price.

Out of curiosity, why do you prefer Lyft?

It used to seem to be the drivers of Lyft tended to be more doing it part time and fun to talk to, versus the much more business oriented and cold Uber community made up of former taxi drivers and truckers. I always assumed this had to do with the branding and the way they targeted potential drivers. I liked the Lyft feel a lot more. But lately they both seem to be a mix of both communities to me, so I don't know if that has changed or if it was even a real effect to begin with.

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

#69

Post by Cyph0n »

brianwawok wrote: post #44
jamez1 wrote: post #15

Earlier quoted context omitted.

A $25 hold for a fare that might be $15 doesn't sound unreasonable? Is ride-sharing that big of a cost for your day to day?

Yes if you don't have $25 you really should walk or take a train. Not sure that is a big reason to pick or not pick it.

Uber is a 2-3 times a month kind of thing; otherwise, I take the bus. More importantly, the $25 was completely unexpected.

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

#70

Post by monk_e_boy »

MarkPNeyer wrote: post #41
duaneb wrote: post #32

Earlier quoted context omitted.

Not before destroying any competition with cripplingly low rates. That's the problem: I can't hail a goddamn taxi anymore, despite it being cheaper by any back of the envelope calculation for society as a whole.

> despite it being cheaper by any back of the envelope calculation for society as a whole. Can you explain this? Not challenging, just curious.

You know.... a monopoly controlling drivers is... um... some how better.

In all seriousness, Uber drives down price to a point that no one can really figure out if being an uber driver is profitable. Uber makes money, but none of that proffit is spent in the local economy. Capitalism doesn't work at that scale... look at the loss they can endure, compare that to a local cab firm, or even somewhere like NY.

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