Uber lost more than $800 million in third quarter 2016

[MalikX]

This might not really be as bad as folks think it is.

Amazon loses money every year and says fukk the shareholders. People still buy it tho because they have a ton of assets and their long term outlook is

Amazon loses money because their entire business model is to have razor thin profit margins. They made like $72 billion one year and took home $273 million. Which is absolutely nothing considering the percentages. I could be wrong on the numbers but, it was in that general vicinity. They do it to cut everybody out from competing, to be the only one in their "space" (i.e. being the biggest ecommerce shop on the web), so they can get as big as possible as fast as possible. VCs keep the company afloat in the meantime. Jeff Bezos is a dikkhead. You never hear anyone talk about him in the same esteem as Jobs or Gates or Zuck or even Sergey and Larry. Horrible, horrible guy.

 

[MalikX]

Technology is improving rapidly, the Google test cars got into accidents mostly because of how shytty human drivers are in comparison, people just running into their test cars.





I wouldn't say Uber drivers are paid shytty, the average Uber driver makes $20 an hour, the problem is Uber doesn't pay for gas/insurance. They will bite the bullet on the front end and make the money back on the back end, driverless cars will be more efficient and wont have hours they can't work. I'd imagine they will initially replace the full time Uber drivers first, mainly because those are the people making the most money for them and getting paid the most.




They have drivers right now for testing purposes.

The technology is a few years away, Cali will no doubt allow them in the future.

I don't breh....they need to work out all the kinks in driverless cars. I saw one on Youtube mistake the glare off a white colored Truck for sunlight/daylight and drove directly into it

 

[Music Fiend]

I thought they were losing money because they were pulling out of a bunch of locations

 

[Saiyajin]

This might not really be as bad as folks think it is.

Amazon loses money every year and says fukk the shareholders. People still buy it tho because they have a ton of assets and their long term outlook is

Amazon's making profit now

Amazon, once a big spender, is now a profit machine

but even when it wasnt, it brought in 100 billion in revenue and took hundred millon in losses which is nothing

Uber only brings in 5 billion in revenue and its losses is almost a billion

 

[Tug life]

They pulled out of China a few months back. That had to hurt.

Rob should have taken notes

 

[L&HH]

Nah, they are moving onto phase two which is to get rid of the drivers, once they no longer have to pay for them they'll be fine.

It's not their problem however there's alot of tech billionaire's that do foresee the devastating effects automation might cause [job loss] and are interested in exploring the idea of basic income:

Y combinator just launched a pilot program in Oakland:

Y Combinator announces basic income pilot experiment in Oakland

One of FB's cofounders amongst others are putting 10 million usd to research it:
Facebook cofounder and others pledge $10 million toward universal basic income research

I see this going two ways.

It works well and the company sees millions in profits....
Or it works terribly (cars crash, money has to be paid out in liabilities, lawsuits, etc.) and they continue to put out almost billion dollar losses each fiscal quarter.

Driverless cars will be the future. The tech has made so much progress in the last 5 years, it's insane. I honestly didn't think they'd have open road testing this fast. Uber has test driverless cars in Pittsburgh and San Francisco now. The next 3 years will be VERY interesting.

if they cant make a profit paying drivers shytty wages, without paying for a single car

how will they make a profit after investing so much capital on Self driving cars (expensive af) ??????

Uber won't be around in 5 years time. Maybe even 2.
They seem to be a company with a business model that allows for massive losses of this amount...yet they still keep on going.
They won't.
Once their IPO goes public if it already has it will continue to lose steam and eventually will be devalued in terms of the company's worth.

I think some of you reading way too much into this "losing money" sensationalism. We really have no idea what they're "losing" money on. They could very well be reinvesting. Remember when Amazon was "losing" money?

Amazon: Nearly 20 Years In Business And It Still Doesn't Make Money, But Investors Don't Seem To Care

And now they're making alot of money:

Whoa, Amazon Isn’t Just Making Money. It’s Making More Than Ever

Let's be real here. If Uber were in trouble, they could easily sell their company for $20+ billion to Google or Apple or whoever.

if they cant make a profit paying drivers shytty wages, without paying for a single car

how will they make a profit after investing so much capital on Self driving cars (expensive af) ??????

Rough estimates are that for every 10 usd uber makes they pay 8 usd to the drivers. So that means 80% of their revenue goes to their drivers. Imagine if they get to keep that 80% of revenue. Let's say Uber makes $6 billion in revenue a year. Currently $4.8 billion is going to their drivers, so that's all a loss. But with driver less cars they get all that money back. So as long as they keep the cost of their fleet of cars below $4.8 billion a year they'll profit. But a car is a fixed cost [for the most part, other than gas and maintenance], so it then becomes a matter of how many rides does that car have to make in order to pay that cost back. If the car costs 30k usd and an average ride costs 10 usd and they're making 8 usd per ride, it'd take 3,750 rides for that car to break even. If the car can make 5 rides a day, it'll take about 2.5 years for that car to break even. Then every ride after that is straight profit [for the most part, again minus gas and maintenance]. These are very rough calculations but the point is just to show they have potential to make alot of money, that's why "losing" 1 billion usd now is nothing to them because in the future they have potential to be making 10s of billions of dollars a year.

 

[L&HH]

bruh America doesnt even have maternity leave and they cry about giving crumbs for starving families as welfare

we will NEVER see basic income in our lifetime in the USA

Canada, and the EU will definitely get it though, and they will be mocked by conservatives here while these same conservatives kill themselves with alcohol, heroin and literal sucide as the EU countries grow

I think it's a longshot but like I said there's people out there spending the money on researching it now. Whatever those results are, if they're good, the odds can very well change.

I'm confused how do they lose money? I thought uber was doing good things

Uber is not that big of a company to be making long term losses compared to say Amazon, Google, or Apple. The bleeding will eventually have to stop before funding eventually stops.

They're a private company, we don't know how or what they're "losing" money. I guarantee you Uber had no intentions of ever profiting in the short term. Their success and failure will come down to how well their able to advance the autonomous car technology

Uber paid $680 million for this Autnomous truck company called Otto. That could very well account for their "loss" right there. But is it a loss if the money is spent on R and D they believe can make the 10s of billions in the future? I assure you if they were bleeding money and in trouble they would not have made this purchase.

Uber paid $680 million for self-driving truck company Otto for the tech, not the trucks

Uber is in a Battle they can't win. The government flexes on them too much basically just extorting them at this point.

Regulation is what is going to finally kill Uber

"Regulation" won't stop them from doing anything. They'll spend whatever it takes [i.e. lobbying] to make sure that "regulation" problem is taken care of.

 

[ReturnOfJudah]

shyt got real

 

[TRFG]

I

"Regulation" won't stop them from doing anything. They'll spend whatever it takes [i.e. lobbying] to make sure that "regulation" problem is taken care of.

Idk, Uber was threatening to leave MD and some other states and those states called their bluff.

 

[L&HH]

Idk, Uber was threatening to leave MD and some other states and those states called their bluff.

Some states, cities, municipalities have been raising a tift at their lack of background checking. There's no Uber and Lyft in Austin, Texas for example. Honestly stuff like this is to be expected. But as I said in my previous comments, their sights are on driverless cars.

 

[TRFG]

Some states, cities, municipalities have been raising a tift at their lack of background checking. There's no Uber and Lyft in Austin, Texas for example. Honestly stuff like this is to be expected. But as I said in my previous comments, their sights are on driverless cars.

Local governments would just ban driverless cars, like cali.

 

[Ghost Utmost]

Even so, tens of millions of people won't have a full time income. Automation will force America to embrace basic income for the sake of saving capitalism itself, or turn America to a permanent Banana Republic.

The sooner the better. A basic income would eliminate the need for a majority of the welfare and benefit programs we have now.

I hope it happens soon

I haven't smoked in a while so I know I'm not trippin.

Wouldn't

Paying people who aren't working

Be the

Same as

WELFARE???????

Call it what you want but the money HAS to come from somewhere to pay people who are on the Coli all day.

 

[L&HH]

Local governments would just ban driverless cars, like cali.

California has never banned driverless cars. The "problem" that happened is California requires permits to be able to test "driverless" cars. Uber didn't get this permit because their cars aren't "driverless", they're "autonomous". They have a "driver" in the driving seat he just doesn't drive the car, for the most part just there observing and ready to take over if necessary.

Uber defies California ban on San Francisco trial of self-driving cars

However on the other hand state of Michigan just passed a law ALLOWING driverless cars even going as far as allowing cars with no steering wheel.

Cars with no steering wheels approved in US state of Michigan

All signs are pointing that Federally they're very much open and willing of this technology. They're just trying to make sure it's all done up to code.

California's proposed DMV rules for driverless cars could change in the wake of federal guidelines

 

[L&HH]

Uber is a one trick pony. They only have one business model where Amazon, Google and Apple has several divisions. You can compare Uber to these guys.

You're comparing a 5 year old company to a 22 year old company, an 18 year old company, and lastly a 40 year old company. How many "divisions" did any 3 of those companies have in their first 5 years?

 

[tater]

I haven't smoked in a while so I know I'm not trippin.

Wouldn't

Paying people who aren't working

Be the

Same as

WELFARE???????

Call it what you want but the money HAS to come from somewhere to pay people who are on the Coli all day.

It would eliminate the need for a majority of welfare programs because if everyone is guaranteed a basic income it eliminates the need for ssi, section 8, food stamps, unemployment and in some cases I've read about supposedly eliminating medicare/caid in exchange for a mandatory portion to go towards a "health fund/insurance". This is the majority of our budget already. The universal income has a much lower price tag if you are able to eliminate and cut the other welfare programs. It would also cut dependence on corporations to keep us employed with shyt benefits. The power would come back to resting with the people and our bargaining power would be much better.

I was looking at a map of mandatory vacation by country. America doesn't have one. CHINA has one! I was shocked. I figured it at least had to be a few days, but nope. In a developed country this is ridiculous IMO. I could really go off into the weeds about how we've just been conditioned from school aged children to work these 40 hour, 9-5 work weeks, but I can never make long responses on here with my thumbs. Corporations make obscene amounts of money yet we never see any of it. Wages haven't gone up yet inflation continues to rise. With a basic living wage companies will need to be more competitive to find talent because if my needs are met, I can be a bit more picky. More cash will be able to flow into the economy and it's not like most welfare recipients don't work anyways. It's not like this is some new idea. Other countries already have extensive welfare systems, yes with less people, but I think it could be done.

Our economy and job market is rapidly changing. Not everyone will be able to ride the waves of that change and they have to eat too. Something needs to happen to quell this soon, or we will have soaring rates of poverty.

This would actually help the economy grow because people's basic needs are met and there would be more expendable cash. I think it's completely doable.

I'm on my phone, excuse he typos. It's also 3 in the morning, I can't sleep