Uber: 5 Billion Loss In One Quarter.

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Pariah Know Your Enemy
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I have to admit that the financial condition of Uber does completely baffle me. I am not knowledgeable about the whole big corp money thing. My big question is: What the fiddlesticks are they spending all this money on??
I mean, stripped down they run a massive server back-end that supports a mobile app and runs some presumably bespoke software to coordinate all the moving parts of their service. So far so good, but how is what they do so many, many, MANY billions of dollars. With the amount of money Uber has spent they could have built the tallest sky scrapper in practically every major city on earth or they could own the worlds largest fleet of transcontinental passenger jets.
How come they keep growing and loosing money?
Every article I have ever read in finance oriented sites about Uber just never smells right, like there is some kind of wide spread conspiracy to keep framing Uber in a positive light. Lots of excuses or "wait until" type stuff.
My main question is how is it that in the future when Uber is bearing the vast cost of owning a fleet of hundreds of thousands self driving cars Uber will be able to make money when they can't make money with the vastly less capital intensive setup they have now, they own no cars and pay their drives a very low wage, don't have to worry about where to store their fleet in the cites they serve.
It seems to me that Uber is a Ponzi scheme that is only kept going because they have been able to maintain the ruse that they will be a huge money maker someday real soon now and the people who are making money off Uber now are the lucky ones who got in the scheme early or mid scam but people still holding Uber stock in the future when it all comes tumbling down will be the suckers who financed the whole house of cars because no matter how I twist this little puzzle around, examining every facet, I just don't see how they are ever going to make money.

Some years ago I read an article in the SAE Journal where an aviation industry expert of some kind put forth the assertion that if you look at the whole picture, all the money invested and profits made that over-all the commercial airline industry has never made any money. Individual airlines have for finite periods of time, but their profits are more than canceled out by the loses at other airlines. This explains the way aviation history has seen the pattern of rolling failures as airlines come, they rise, they fly for awhile and then crash, always to be replaced by a new airline with new investors which is doomed to follow the same pattern.
The ride share business seems to be similar to this.
dv
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They lose money on every ride and make it up in volume.
dv
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Also, they're not really a ride share company. Never were. They're a taxi compay and theres a reason taxis are expensive.
TOS
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dv posted:
They lose money on every ride and make it up in volume.


... or don't make it up, as the case may be
juice Inadvertently correct
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Money laundering Ponzi scheme?
dv
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TOS posted:
dv posted:
They lose money on every ride and make it up in volume.


... or don't make it up, as the case may be


<that's the joke.png>
Pariah Know Your Enemy
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The biggest flaw I see in the whole logic of Uber is the way they are developing their own self driving system. That seems utterly misguided. No major car company is going to license uber tech, they are all well on their way to developing their own self driving systems and Uber is certainly not going to be building Uber branded self driving cars to serve their own needs. There is a reason that Checker and their Marathon went out of business: The big automakers can do the job cheaper and better.
Metacell Chocolate Brahma
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I'll never understand Uber...it's paying to hitchhike.
I suspect fraud. The business practices I'm aware of such as project greyball and them actively flouting laws whenever they can leads to me that whatever isn't being sunk in the self driving project (which will always be known as the project that kills people) is problably being embezzled.
jkahless Custom Title
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I think of über as a cocaine addict in the midst of the best continuous high of their life. Haven’t slept for a week, but feeling great!
That's problably pretty accurate, especially if you think about how that addict is affecting everyone around him.
justine Elitist Beer Lover
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Uber is and always has been corrupt. More corrupt than the average corrupt company. Think going after a woman and stealing her medical records after she was raped by an Uber driver, and they were sure it was a set up by the competition. That resulted in their ejection from the country. I believe it was India? (After a quick google, it looks like they were only banned from Delhi after the rape)

They spend more money tracking and retrieving Jump bikes.

The ride share part probably costs them little to no money since the drivers are independent contractors. They just take a percentage. I'm sure there's insurance involved there somewhere. And i don't think they provide vehicles to drivers like Lyft does.
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Uber: 5 Billion Loss In One Quarter.