
How Uber Makes Money - kolbe
https://www.cbinsights.com/research/report/how-uber-makes-money/
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joecool1029
They, uh.... don't make money.

From the article:

>Uber’s losses today are the stuff of startup legend.

>In Q3’18, the company reported another quarter in the red. Revenues rose
nearly 40% year-over-year to $2.95B, but the company still lost more than $1B
on a GAAP basis.

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yesenadam
(I've managed to hardly read anything about Uber before on here, so excuse the
naïvety)

So it's virtually a pyramid scheme?! Sounds like the main benefit for drivers
(apart from low wages) is a large bonus for referring other new drivers. Uber
spends most money getting more drivers, and ever expanding. The early drivers
got paid well (from bonuses), and so do those running the company, I assume.
So when the global supply of new drivers runs out,..what?

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abb1234etric
Does anyone understand what goes into Ubers sales and marketing expense? It
appears they are spending roughly 500mm a quarter on this line item which is
enough to eat up most of their entire gross profit. Are their high Sales and
marketing costs a function of their high driver churn?

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joecool1029
> Does anyone understand what goes into Ubers sales and marketing expense?

I would guess free rides for new rider signups, promotions to get regular
users (gotta boost dem revenue figures, drivership, and rideership numbers for
the IPO) and driver cash incentives to sign-up and later drive during specific
periods of time.

~~~
abb1234etric
Yeah if that is true then the business is inherently unprofitable and they are
just playing accounting gimmicks to obscure this simple fact.

