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(Reuters)   Uber: We have an IPO, but we'll never have profit   (reuters.com) divider line
    More: Fail, Initial public offering, Uber Technologies Inc, IPO filing, Alphabet Inc's Waymo self, Stock market, Uber Eats, string of public scandals, Chief Executive Dara Khosrowshahi  
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670 clicks; posted to Business » on 12 Apr 2019 at 7:07 AM (10 days ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



21 Comments     (+0 »)
 
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2019-04-12 01:50:37 AM  
That sounds like a bitter IPO.
 
2019-04-12 05:46:01 AM  
It looks like a tech bubble about to make some people into billionaires while it's still possible before the company and its non-sustainable profit model crashes to the ground.
 
2019-04-12 07:42:28 AM  
They will have a profit when they eliminate drivers.
 
2019-04-12 07:45:06 AM  

TheHighlandHowler: They will have a profit when they eliminate drivers.


The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.
 
2019-04-12 08:00:10 AM  

HMS_Blinkin: TheHighlandHowler: They will have a profit when they eliminate drivers.

The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.


Wait, so their equipment costs are effectively paid for by the same staff responsible for kicking up the boss's cut, and they still can't make a profit?
 
2019-04-12 08:15:18 AM  
It was a fun ride while it lasted.  Thank you VC bros.  Because of your largesse, I probably avoided a DUI or two.
 
2019-04-12 08:22:41 AM  

HMS_Blinkin: TheHighlandHowler: They will have a profit when they eliminate drivers.

The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.


This is exactly what I was thinking, as well as, how can they not have to pay for all that, take in billions of dollars more than they lost last year, and not turn a profit?
 
2019-04-12 08:34:03 AM  
Are they hiring Hollywood accountants?
 
2019-04-12 08:35:27 AM  
If you borrow money and shove it in your pocket then pay back the loan with interest from turnover thats a loss.
you don't have to make a profit to profit.
 
2019-04-12 08:56:21 AM  

HMS_Blinkin: TheHighlandHowler: They will have a profit when they eliminate drivers.

The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.


A ton of new costs that they have zero infrastructure and experience in managing.  If anything, they should pair with a car rental company for the car part and a temp agency for the drivers, but the reason no one has done that is because of how expensive it would be.  The reason that Uber cost less than cabs is because cab companies do all of that without using VC money to subsidize rides.

In the end, Uber is an app that connects buyers with sellers.  Somebody will find a better way to use the app, but it won't be as cheap as Uber.  This was a fortunate time.  It's over.
 
2019-04-12 09:15:37 AM  
those little windscreen stickers must be really expensive
 
2019-04-12 10:11:44 AM  
Big change from the 1980s when Osborne Computer's IPO was killed because their cash flow was negative due to their explosive growth.  They were making a profit on every machine shipped.
 
2019-04-12 11:35:38 AM  
How the fark do you not profit when you're effectively being paid to have drivers? That's either a scary set of legal expenses, or a scary amount of coke.
 
2019-04-12 11:50:47 AM  

Butlord: HMS_Blinkin: TheHighlandHowler: They will have a profit when they eliminate drivers.

The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.

This is exactly what I was thinking, as well as, how can they not have to pay for all that, take in billions of dollars more than they lost last year, and not turn a profit?


Insurance is 15% of Uber's revenue.

Insurance does not scale, it will always be 15%.
 
2019-04-12 12:44:59 PM  
It also shows that the New York Stock Exchange will just about list any company with a large valuation, even if it's business model is unsustainable.
 
2019-04-12 12:46:47 PM  

DesertCoyote: It also shows that the New York Stock Exchange will just about list any company with a large valuation, even if it's business model is unsustainable.


How is it the NYSE's business if the company isn't profitable? If people want to buy and sell shares of a legitimate, rule-abiding company, so be it.
 
2019-04-12 12:52:35 PM  

dukeblue219: DesertCoyote: It also shows that the New York Stock Exchange will just about list any company with a large valuation, even if it's business model is unsustainable.

How is it the NYSE's business if the company isn't profitable? If people want to buy and sell shares of a legitimate, rule-abiding company, so be it.


The NYSE won't see that money the day Uber's stock plunged under $1 and no longer meets listing qualifications.
 
2019-04-12 02:35:07 PM  
Big deal. It's not whether the company makes a profit but whether someone who buys the IPO can then sell the stock for a nice profit that really matters.
 
2019-04-12 03:11:21 PM  

DesertCoyote: dukeblue219: DesertCoyote: It also shows that the New York Stock Exchange will just about list any company with a large valuation, even if it's business model is unsustainable.

How is it the NYSE's business if the company isn't profitable? If people want to buy and sell shares of a legitimate, rule-abiding company, so be it.

The NYSE won't see that money the day Uber's stock plunged under $1 and no longer meets listing qualifications.


Yeah, so?  In the meantime they collected the fees to list it.
 
2019-04-12 05:33:53 PM  

runwiz: Big deal. It's not whether the company makes a profit but whether someone who buys the IPO can then sell the stock for a nice profit that really matters.


The public stock market is the place to find the sucker that will pay to hold your bag of shiat.
 
2019-04-13 01:34:53 AM  

born_yesterday: HMS_Blinkin: TheHighlandHowler: They will have a profit when they eliminate drivers.

The drivers provide them with the car, gas, insurance, and maintenance out of their own pockets. If Uber eliminates drivers, they'll take on a ton of new costs.

Wait, so their equipment costs are effectively paid for by the same staff responsible for kicking up the boss's cut, and they still can't make a profit?


Taxis had already figured out how to squeeze all the value out of drivers. There was no more to extract by Uber. Can Uber build a fleet of autonomous electric vehicles at low enough cost, and operate the fleet at a profit before it goes bust?
 
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