loses aleays areterrible no getting around that
Uber lost more than $800 million in third quarter 2016
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NobodyReally
Superstar
http://gizmodo.com/why-uber-is-losing-money-faster-than-any-tech-company-e-1785736918
Why Uber Is Losing Money Faster Than Any Tech Company Ever
Michael Nunez
8/25/16 10:47am
Uber is losing money faster than any technology company ever, and it’s largely because of an essential component to the company’s operations: the drivers.
Bloomberg reports Uber lost $1.27 billion in the first half of this year, which is unprecedented, even for a tech company. By comparison, Amazon reported losses of $1.4 billion in 2000 during its biggest loss ever. Amazon CEO Jeff Bezos fired 15 percent of his workforce as a result.
Uber is clearly playing by the same “grow first, make money later” edict of Silicon Valley, so it should be no surprise the company’s costs have increased as its operations expand into new cities. What is surprising, however, is that the biggest cost to the company is the fee it pays out to drivers. According to the Bloomberg report, driver subsidies account for a majority of losses in the first half of 2016.
That’s the same fact shown in leaked documents published by The Information earlier this year. The leaked documents showed Uber paying out $2.72 billion to drivers in the first half of 2015. By comparison, Uber lost only $72 million to promotions and price cuts during the same period.
Uber has been desperately (and quietly) trying to mitigate its losses to drivers. After lowering fares across North America to attract new customers, Uber began taking a greater percentage of driver’s fares (up to 30 percent now). Uber has instituted temporary hourly wage guarantees in some cities, but as Buzzfeed recently reported, Uber is still taking about one-third of their driver’s meager wages in cities across the country.
A recent Forbes report notes that gross bookings (fares charged to the app before drivers and customers get their cut) were way up in 2015. This fact is being touted as one of the biggest indicators that Uber’s business is doing well. So how can Uber make money if its always losing so much to its drivers?
Eventually, Uber will get rid of the drivers and turn a huge profit. Earlier this month, Uber announced it would begin allowing customers in downtown Pittsburgh to summon self-driving cars from their phones, indicating at least part of the company’s long-term business plan. Uber also acquired self-driving car company Otto for $300 million, showing its eagerness to advance its driverless car technology.
“It’s the case of business 101,” said Uber in a statement to Business Insider last year after its private finances were leaked. “You raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”
The critical part that Uber omits is how it will earn a profit if it continues to lose most of its money to drivers. The answer is seems pretty obvious to me: just get rid of them.
Why Uber Is Losing Money Faster Than Any Tech Company Ever
Michael Nunez
8/25/16 10:47am
Uber is losing money faster than any technology company ever, and it’s largely because of an essential component to the company’s operations: the drivers.
Bloomberg reports Uber lost $1.27 billion in the first half of this year, which is unprecedented, even for a tech company. By comparison, Amazon reported losses of $1.4 billion in 2000 during its biggest loss ever. Amazon CEO Jeff Bezos fired 15 percent of his workforce as a result.
Uber is clearly playing by the same “grow first, make money later” edict of Silicon Valley, so it should be no surprise the company’s costs have increased as its operations expand into new cities. What is surprising, however, is that the biggest cost to the company is the fee it pays out to drivers. According to the Bloomberg report, driver subsidies account for a majority of losses in the first half of 2016.
That’s the same fact shown in leaked documents published by The Information earlier this year. The leaked documents showed Uber paying out $2.72 billion to drivers in the first half of 2015. By comparison, Uber lost only $72 million to promotions and price cuts during the same period.
Uber has been desperately (and quietly) trying to mitigate its losses to drivers. After lowering fares across North America to attract new customers, Uber began taking a greater percentage of driver’s fares (up to 30 percent now). Uber has instituted temporary hourly wage guarantees in some cities, but as Buzzfeed recently reported, Uber is still taking about one-third of their driver’s meager wages in cities across the country.
A recent Forbes report notes that gross bookings (fares charged to the app before drivers and customers get their cut) were way up in 2015. This fact is being touted as one of the biggest indicators that Uber’s business is doing well. So how can Uber make money if its always losing so much to its drivers?
Eventually, Uber will get rid of the drivers and turn a huge profit. Earlier this month, Uber announced it would begin allowing customers in downtown Pittsburgh to summon self-driving cars from their phones, indicating at least part of the company’s long-term business plan. Uber also acquired self-driving car company Otto for $300 million, showing its eagerness to advance its driverless car technology.
“It’s the case of business 101,” said Uber in a statement to Business Insider last year after its private finances were leaked. “You raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”
The critical part that Uber omits is how it will earn a profit if it continues to lose most of its money to drivers. The answer is seems pretty obvious to me: just get rid of them.
MarloStanTrill
Banned
They didn't even say why they lost money in the article
journalists these days really aint shyt-- you can get faster, better, and more accurate news in the captions & comment sections of your local instathot's pics
Someone actually built a solution to that but nobody cares about women so.And what will replace it?
I don't see this transportation model going away any time soon. I don't remember the last time I took a regular cab.
What they need the do though is get rid of their horny drivers who have no shame in hitting on you if you're allone and the a$$holes who try take take longer routes just because you're a chick.
Also close all the loopholes that allow users to free load.
'Chariot for Women' is a female-only Uber that could get shut down before it takes off
Atsym Sknyfs
Superstar
That's the thing with today's economics. sometimes they use fuzzy math... you cant lose money you never received. if they had projections and didn't meet them... that money was never technically lost cause they never had it.
Poetical Poltergeist
Precise and cold hearted
Uber is like fukk, we actually have to pay these people to do what our business requires. smh.
Uber China got out of China in exchange for a 20℅ stake in Didi Chuxing (the Uber of China). But you're right, they lost a shyt load of money on their China operations. I think the most recent quarter in question does not include their China losses.
In Deal With Didi, Uber Frees Itself to Expand in Other Markets
Uber’s China Exit
Uber Sells China Operations to Didi Chuxing
OneManGang
Veteran
America in a nutshell.
What's the difference between the two?
VladTheImpaler
The Sensational Prince
Lyft stay sending emails about 15% off for the week ot other goodies.... Lyft fo the people
