This article argues that Uber is a good business because it did not lose as much money as stated in the profit and loss statement and it's a growing business. It was really 1.6 not 5.2 billion.
The argument is stupid. Whatever the loss was it is still a large loss. Why invest in a company that does not have a clear way to profit and keeps on losing money?
I think they might eventually find a profitable business model but it will be a much smaller luxury market above public transportation and taxies. But at this point, they are still searching for a profit. How is this a good investment?
I don't understand how they're losing so much money. Their product is a mobile app and their risk is nearly zero since they don't pay out until they get paid.
Does it really cost that much to do marketing for a brand that pretty much everyone is familiar with? Because that seems like the main expense other than lawsuits and lobbying to get access to more markets, and they already seen to be available in most places.
I must be missing something but because I cannot understand how they could possibly be losing money. My guess is that they're spending a ton on research that doesn't really need to be done by them. Let other companies figure out self driving cars and help drivers leverage that in regions that allow it.
They are paying a percentage of EACH trip, I think it's in the ~30% range so they are more affordable.
And then yeah, they have a BIG team and also spend a lot in the autonomous technology which is their future... I don't Think at this level Marketing is really a big percentage of the overall...
The argument is stupid. Whatever the loss was it is still a large loss. Why invest in a company that does not have a clear way to profit and keeps on losing money?
I think they might eventually find a profitable business model but it will be a much smaller luxury market above public transportation and taxies. But at this point, they are still searching for a profit. How is this a good investment?