Uber lost more than $800 million in third quarter 2016

[Ironman]

time to start investing in a taxi

Those racist fukks don't come out of Manhattan and only for white people fukk them

 

[Giselle]

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) ??????

That doesn't make sense to me either. Along with the self driving cars, they will also have to buy car insurance, gas, and other things for the care of the car. Stuff that they don't have to care about nor pay for with the way things are set up now. That is way more expensive than what they're doing now. If they change into self driving cars, they will surely have to raise their prices, which defeats the whole purpose of the app, so people may as well just use a taxi.

They are making a profit now, but they are recorded as a huge "loss" bc they are using more money than they make, I assume.

I'll make a guess and say that they are sacrificing short term profits for long term market domination. Knowing a little about their biz model I would say that the money is being burned on the following:

1) expansion
2) offices/real estate
3) employee compensation
4) driver insurance
5) driver incentives
6) subsidizing rides (when they give free rides they have to pay drivers out of pocket)
7) legal/regulatory fees
8) lobbying fees
9) marketing
10) driver sign-up bonuses

There are probably over 200,000 uber drivers around the world. Those incentives add up. Eventually they will raise fares, but only after they have completely crushed the competition.

This makes sense

 

[Pitfalls0117]

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.

What about Uber eats

 

[mbewane]

I'll make a guess and say that they are sacrificing short term profits for long term market domination. Knowing a little about their biz model I would say that the money is being burned on the following:

1) expansion
2) offices/real estate
3) employee compensation
4) driver insurance
5) driver incentives
6) subsidizing rides (when they give free rides they have to pay drivers out of pocket)
7) legal/regulatory fees
8) lobbying fees
9) marketing
10) driver sign-up bonuses

There are probably over 200,000 uber drivers around the world. Those incentives add up. Eventually they will raise fares, but only after they have completely crushed the competition.

They've been raising fares here in Paris and I know I'm back to checking the hour of the last metro

Ironically they had a demontsration here because of some employeer worker protection thing...and while the whole point of Uber is deregulation they're organizing themselves in unions and looking at the state for support

 

[L&HH]

That doesn't make sense to me either. Along with the self driving cars, they will also have to buy car insurance, gas, and other things for the care of the car. Stuff that they don't have to care about nor pay for with the way things are set up now. That is way more expensive than what they're doing now. If they change into self driving cars, they will surely have to raise their prices, which defeats the whole purpose of the app, so people may as well just use a taxi.

They are making a profit now, but they are recorded as a huge "loss" bc they are using more money than they make, I assume.



This makes sense

I explained it in another post. A car is a fixed cost. Meaning after X amount of rides, the car will pay for itself. Currently uber pays drivers $8 out of every $10 or 80% of their revenue.

If the car costs them $30,000 and makes them $15,000a a year, it will take them 2 years to break even on the car (a little more because gas/maintenance/insurance will likely be a variable cost of ~$5,000 or so but that means the car is still returning them $10,000 a year). What's the life cycle of the car? Let's say 10 years. So, if it's making them $10k a year (subtracting the $5k variable cots mentioned before) in 10 years the car will make them $100,000. Subtract the $30k fixed cost of the car and the car profits them $70,000 in it's life cycle. This is a very rough and crude caluclation of the math. However no matter how you slice it the driverless car will invariably provide them more profit than drivers. They lose 80% of their revenue to paying drivers.
Multiply $7,000 profit per year, per car by the number of cars. So if they have 100,000 cars, they'll profit $7,000*100,000 = $700 million dollars a year profit. (currently they have over 1 million drivers globally)

It's possible they can even cut their prices with driverless cars.

 

[Soundbwoy]

How did they lose money?

most likely by lobbying the right for the service in different markets, up here the taxis were going hard on them because a taxi permit is worth 100k right now so uber had to suspend their services in Montreal for 6 months now its back but under all type of new regulations and extra steps the drivers have to take to drive for uber now

 

[The Emperor]

How did they lose money?

Advertising

 

[TLR Is Mental Poison]

Those millions of people without their income from Uber would be to the economy.

Someone will come in to fill the gap. Probably Amazon

 

[Amestafuu (Emeritus)]

I know they take a big hit on fraud. nikkas runnning up Uber with stolen card numbers.

With your real face and number?

 

[Amestafuu (Emeritus)]

They are loosing money because they have been hit with all types of regulations for their businesses wherever they operate. Like requirements for cormercial insurance for drivers etc

 

[Reginald Noble]

This shyt ain't ending well...

They could make up for it if they rule the world (outside of China).

If they are able to fully dominate Latin America they could make it up. But I been down there and if you think fraud is a problem here - Down there forget about it.

 

[Reginald Noble]

With your real face and number?

It's the same as that nikka Tyrone holding up a grocery store with no mask

He don't give a fukk and got two burners

One Gat
One Fake #

 

[Amestafuu (Emeritus)]

It's the same as that nikka Tyrone holding up a grocery store with no mask

He don't give a fukk and got two burners

One Gat
One Fake #

Still don't see it unless you are just putting in a credit card number but I thought the app verifies identity and also sends out a pic. Eitherway this fraud is giving up their real phone number or face etc for identification. Unless you are telling me people are rolling around with burner phones just to use stolen cards for uber lol.

 

[R=G]

What? Uber is as popular as Galaxy/Apple phones and snapchat. Everyone uses them. Sounds odd.

 

[concise]

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

Some people just don't get it. It would be the closest thing to heaven on earth. No one would be homeless or broke, More people have time to develop themselves individually, and more time to travel the world.