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Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

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Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#71

Post by amoitnga »

georgeecollins wrote: post #23

I don't know what to say about this because as a lifelong value investor I cannot accept the valuation of Uber based on it's earnings. But the same logic held me back from investing in Facebook and Google, which did not make any sense to me at the moment of their IPO. How do I decide what Uber's earnings will be in five years?

I'm not an investor, no experience, just want to voice my 2c.

- facebook and google sure, but how many are there of those who didn't make it?

- sounds like a fear of missing out.

- Buffet didn't invest in Microsoft because he didn't "get it". His idea, I believe, is: "it's ok to pass on investments". He's looking for "sure things".

Personally, I think the entire thing is ridiculous. 120B ? for what? 2 of my friends are uber drivers and hate every second of it, that's worth that kind of money? or the fact that they have an app. What do they have?

Market share? As soon as somebody gives me the same or slightly less price, I'll push a button on that app instead. Why didn't they go public for so long? Are they trying to rescue their investments now? I don't know. Don't care.

It's not the type of product I would miss. it's just a taxi.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#72

Post by BoiledCabbage »

joshe wrote: post #26

What is Uber's long term moat/pricing power? To compete in a local market you just need to sign up 5000 or so drivers. At a $5 signup bonus that costs like $25,000. You can just be the third app, most drivers already swap between Lyft/Uber. You could even form a drivers cooperative and just give all the charges to drivers (like farmers do). Regulatory capture seems like the only real route to sustainable profits with…

For all the lip service that's paid to "free market capitalism" I chuckle that the first question always is "How quickly can we get to a moat so we don't have to compete with anyone." Whether it's a monolopy, vendor lockin, network effect, high customer leave burden or any of the other number of methods.

And, I'm not knocking that that how business works, I just think we probably acknowledge that many businesses have little interest in actual market competition and letting the best overall product win. Free markets are discussed and desired in theory, but people don't really want free competition in practice.

It's more of an "emilinate burdens on me as a business, but don't make me actually compete" economic system.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#73

Post by goobynight »

clairity wrote: post #39
sjjshvuiajhz wrote: post #13

Earlier quoted context omitted.

UberPool Express has some things in common with the bus, although I’ve still never been slapped in the face by a homeless man in an Uber.

have you ever seen your neighbor get dragged running and hanging out of the passenger side window by an angry uber driver? have you had someone slap you who is not homeless? i have. i get that you want to equate homeless folks on transit with violence but you did a really bad job of it.

Ah yes. The hill to die on is definitely masking the volatility of the homeless.

This guy wasn't even making a generalization.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#74

Post by Pyxl101 »

GCA10 wrote: post #44
i_am_nomad wrote: post #33

Earlier quoted context omitted.

So now Uber's competitors just have to market to your controller, which is in fact easier than marketing to everyone at your company.

Harder than it seems. AmericanExpress had outsized market share in the corporate travel market for about 30 years, even though it never struck me as a superior product to Visa-based cards. Not sure who they hypnotized to establish that edge, but it became strangely durable.

It always seemed very strange to me that it's legal for company-expensed credit card purchases to generate individual, personal rewards for the card holders. (And these awards aren't even taxed?) Something feels underhanded about it, though I can't put my finger on it.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#75

Post by [deleted] »

ghaff wrote: post #56
maaaats wrote: post #32

Earlier quoted context omitted.

If one could reliably order an Uber that would be great. But no way Im waiting outside in -10C while the app lies about someone about to pick me up.

Yeah. Much better to make the driver wait for you. I’m sure you’re very important.

[deleted]

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#76

Post by treis »

joshe wrote: post #53
treis wrote: post #42

Earlier quoted context omitted.

>At a $5 signup bonus that costs like $25,000. You can just be the third app, Uber can offer those drivers $10 not to switch and their capital will last longer than yours.

Sure right now. But long term? They don't seem to have any kind of moat at all. They can't actually do that because it messes with the contractor thing, but they can do what they are doing with the rewards for a certain amount of availability. But still I could just halve the amount I take from the transaction and give it to drivers. That's surely better for the drivers. Moat is about them having a long term advantag…

>Sure right now. But long term? They don't seem to have any kind of moat at all.

They also have the moat of providing a reasonably good service with network effects. How would you come in and beat the Uber/Lyft duopoly? They can copy any innovation you come up with and have the capital to beat you in a price war.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#77

Post by liquid153 »

nostromo wrote: post #24
liquid153 wrote: post #21

Earlier quoted context omitted.

Has happened to me, I was uber pissed. The Uber driver waited less no more than 2mns Max.

It's fairly rude to make them wait at all. They're not being paid while they're waiting for you.

1mn-2mn wait is rude? What world do you live in?

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#78

Post by mrep »

maaaats wrote: post #32
nostromo wrote: post #24

Earlier quoted context omitted.

It's fairly rude to make them wait at all. They're not being paid while they're waiting for you.

If one could reliably order an Uber that would be great. But no way Im waiting outside in -10C while the app lies about someone about to pick me up.

Could you not stand near the door once you saw the Uber was getting close? I always head to the door once it is getting close and wait for them inside.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#79

Post by fierro »

sherlock_h wrote: post #31

Over the long run, at least in the U.S. it seems like Uber/Lyft are edging towards a comfortable duopoly. Usually their prices move in lockstep (each has insights into the other company's prices through email receipt intelligence, credit card intelligence, webscraping, etc.). And their services are fairly exchangeable. For either one to win there needs to be either a massive cost advantage or some sort of stickiness…

don't discount the ability for either company to build that stickiness. They know this is important.

Think credit cards, collaboration with last-mile transportation (Uber + Bird), discounts on restaurants, things of that nature. They can and are working towards building more of a brand ecosystem.

Re: Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near

#80

Post by justfor1comment »

Uber is getting more expensive with time as they try to consolidate losses. For my commute to work nowadays Express Pool costs the same as UberX did a year ago. And of course express pool includes overtly long sight seeing detours and dangerous pick up/drop off points. This is getting prohibitively expensive and I plan to switch to an electric scooter + public transit in a few months.
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