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(CNBC)   Uber loses $2.6bil in a quarter but lifted revenue means it just might ride it out   (cnbc.com) divider line
    More: Followup, Income statement, The Quarter at Tropicana, Free cash flow, Device driver, Million, second-quarter loss, CEO Dara Khosrowshahi, Shares of Uber  
•       •       •

301 clicks; posted to Business » on 02 Aug 2022 at 9:40 AM (18 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



36 Comments     (+0 »)
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2022-08-02 9:46:30 AM  
One day they might turn a profit like all of your local cab operators.
 
2022-08-02 9:48:21 AM  

HotWingConspiracy: One day they might turn a profit like all of your local cab operators.


These things take time.  It won't happen Ubernight.
 
2022-08-02 10:01:54 AM  
CEO Dara Khosrowshahi said Uber continues to benefit from an increase in on-demand transportation and a shift in spending from retail to services.

No conceivable path to profitability, but, hey, we're losing less money than we could be!


The company reported a net loss of $2.6 billion for the second quarter, $1.7 billion of which was attributed to investments and a revaluation of stakes in Aurora, Grab and Zomato.

So, they only actually lost $900 million operating their core business.  In one quarter.  Oh, plus $1.7 billion in funny money, but that doesn't really count, right?


Shares of Uber were up 13% after markets opened.

Sure.  Why the fark not.
 
2022-08-02 10:17:47 AM  
they make up for it in volume
 
2022-08-02 10:23:13 AM  
The company is 13 years old and it still hasn't made a profit.  People area like "Amazon took whatever to make a profit", but it was 9 years and this was because the company was relentlessly expanding.  It went from just books to everything.  Uber hasn't done more of anything.  It's been the same company with the same reach for 12 years.  It abandoned the self-driving car thing.  Remember flying taxis?  The skies were supposed to be full of them 2 years ago.  It was vaporware.

This company is a dud.  The VC got mom and pop to give them billions.  That was always the plan.  It's why they pushed so hard on the vaporware.
 
2022-08-02 10:26:40 AM  
So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?
 
2022-08-02 10:27:50 AM  

Rapmaster2000: The company is 13 years old and it still hasn't made a profit.  People area like "Amazon took whatever to make a profit", but it was 9 years and this was because the company was relentlessly expanding.  It went from just books to everything.  Uber hasn't done more of anything.  It's been the same company with the same reach for 12 years.  It abandoned the self-driving car thing.  Remember flying taxis?  The skies were supposed to be full of them 2 years ago.  It was vaporware.

This company is a dud.  The VC got mom and pop to give them billions.  That was always the plan.  It's why they pushed so hard on the vaporware.


The only thing that surprises me is that they haven't gone into crypto...
 
2022-08-02 10:31:59 AM  

Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?


Nobody is "cheering" Uber's death.  Why would I cheer it?  I'm sad that it's failing.  VC techbro money drove my drunk ass all over town for a decade.  I loved it.

Uber was a middleman that connected buyers and sellers.  It was a good app, but a bad business.  This is a common problem.  It's called "good product, bad business"  https://www.nytimes.com/2022/05/03/technology/tech-companies-business-plans.html

Uber simply needs to charge more.  It needs to be a lot more expensive to make a profit. It has gotten more expensive.  It's like $30 to get from my house to Midtown Atlanta now on a Saturday, which is only about 5 miles.  And it still needs to charge more.

Cabs were expensive and terrible because that's what it took to make money.
 
2022-08-02 10:35:20 AM  

Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?


Fortunately, I live in a country with a developed public transportation infrastructure. We don't need no stinking Uber.
 
2022-08-02 10:36:03 AM  

Farking Clown Shoes: Rapmaster2000: The company is 13 years old and it still hasn't made a profit.  People area like "Amazon took whatever to make a profit", but it was 9 years and this was because the company was relentlessly expanding.  It went from just books to everything.  Uber hasn't done more of anything.  It's been the same company with the same reach for 12 years.  It abandoned the self-driving car thing.  Remember flying taxis?  The skies were supposed to be full of them 2 years ago.  It was vaporware.

This company is a dud.  The VC got mom and pop to give them billions.  That was always the plan.  It's why they pushed so hard on the vaporware.

The only thing that surprises me is that they haven't gone into crypto...


When the Twitter/Elon deal was announced, there was a crypto conference happening and Cathie Wood, Anthony "The Mooch" Scarramucci, and Michael Saylor had a forum where they stated Elon was going to fix Twitter with blockchain.  There was no explanation of what specifically blockchain would do, because there never is.  It was just "It's got blockchain!  Get rich!"

It was the perfect encapsulation of crypto culture - salesmen promoting crypto with no identifiable benefit.
 
2022-08-02 10:44:11 AM  
Just got out of an Uber 20 minutes ago. It's a great service, but like a lot of things in the current economy, the company is somehow supposed to be something 'more' than just the service they offer.

Any valuation based on anything other than ride sharing is just buying blue sky. But the market loves blue sky, and there's real money to be made in the blue sky business, right up until there isn't.
 
2022-08-02 10:46:55 AM  

pearls before swine: CEO Dara Khosrowshahi said Uber continues to benefit from an increase in on-demand transportation and a shift in spending from retail to services.

No conceivable path to profitability, but, hey, we're losing less money than we could be!


The company reported a net loss of $2.6 billion for the second quarter, $1.7 billion of which was attributed to investments and a revaluation of stakes in Aurora, Grab and Zomato.

So, they only actually lost $900 million operating their core business.  In one quarter.  Oh, plus $1.7 billion in funny money, but that doesn't really count, right?


Shares of Uber were up 13% after markets opened.

Sure.  Why the fark not.


Hey, when you launder money expect 20-25% fee (loss) to get in clean.
So they lose a billion here and a billion there.  It's not like they are a conventional transportation company with a massive fleet of vehicles that need to be maintained.  They are Web 3.0, modern, hip, with it.
/s
 
2022-08-02 10:52:21 AM  

Rapmaster2000: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

Nobody is "cheering" Uber's death.  Why would I cheer it?  I'm sad that it's failing.  VC techbro money drove my drunk ass all over town for a decade.  I loved it.

Uber was a middleman that connected buyers and sellers.  It was a good app, but a bad business.  This is a common problem.  It's called "good product, bad business"  https://www.nytimes.com/2022/05/03/technology/tech-companies-business-plans.html

Uber simply needs to charge more.  It needs to be a lot more expensive to make a profit. It has gotten more expensive.  It's like $30 to get from my house to Midtown Atlanta now on a Saturday, which is only about 5 miles.  And it still needs to charge more.

Cabs were expensive and terrible because that's what it took to make money.


Cabs could have done better with emerging tech.  They opened the window for Uber.  But now cab companies are competing with what essentially amounts to dumping.  Hopefully when people stop pouring money into rideshare subsidies, the cab companies can make money again and will upgrade the experience.  There's nothing that Uber does that cab companies can't easily copy, other than offering a service for a loss.
 
2022-08-02 11:02:25 AM  

pearls before swine: Rapmaster2000: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

Nobody is "cheering" Uber's death.  Why would I cheer it?  I'm sad that it's failing.  VC techbro money drove my drunk ass all over town for a decade.  I loved it.

Uber was a middleman that connected buyers and sellers.  It was a good app, but a bad business.  This is a common problem.  It's called "good product, bad business"  https://www.nytimes.com/2022/05/03/technology/tech-companies-business-plans.html

Uber simply needs to charge more.  It needs to be a lot more expensive to make a profit. It has gotten more expensive.  It's like $30 to get from my house to Midtown Atlanta now on a Saturday, which is only about 5 miles.  And it still needs to charge more.

Cabs were expensive and terrible because that's what it took to make money.

Cabs could have done better with emerging tech.  They opened the window for Uber.  But now cab companies are competing with what essentially amounts to dumping.  Hopefully when people stop pouring money into rideshare subsidies, the cab companies can make money again and will upgrade the experience.  There's nothing that Uber does that cab companies can't easily copy, other than offering a service for a loss.


Exactly this.  Uber's plan was to take a pile of VC money and drive its competition out of business so that it could then raise rates.  The problem is that Lyft showed up and also the cab companies proved more resilient than thought.  So then they started making vaporware promises like self-driving cars and flying taxis to keep the capital flowing in.  Once they IPO'd, the VC got paid back and there was no more reason to push the vaporware.  Mom and Pop are just bag holders now.

Another bag holder stock is Groupon.  Remember Groupon?  People loved Groupon because you could get something for nothing.  Great product, but bad business.  Groupon didn't make any money for the companies who used it.  The stock is off 97% from its IPO.
 
2022-08-02 11:19:03 AM  

Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?


I'm excited to have an open source app that connects me with someone who uses Venmo directly between driver and client.  The security will be that the app will have to link to a properly maintained bank or lending institution, so at the least there won't be anonymity for the driver.  Maybe the app has a GPS cache for the trip that saves for a week to my home cloud, so at least they know where my body is buried. Closure!
 
2022-08-02 11:51:22 AM  

Rapmaster2000: Another bag holder stock is Groupon.  Remember Groupon?  People loved Groupon because you could get something for nothing.  Great product, but bad business.Groupon didn't make any money for the companies who used it.  The stock is off 97% from its IPO.


Hell, remember LivingSocial, once valued at $6 billion?  Never even got to the IPO phase before its business model crapped out and Groupon bought them for an undisclosed sum (probably $0).  They had opulent offices in DC Chinatown, now long since shuttered.  Oopsie.
 
2022-08-02 12:00:57 PM  
We just got back from a family road trip to Philly and DC.  We parked our car in those cities and whenever we'd want to go someplace, the missus would tell me to call an "Uber."

We'd use Lyft every time though.  "Uber" is more like "Jell-O" or "Band-Aid"...it's become a generic phrase for ride-sharing.
 
2022-08-02 12:01:44 PM  

deadsanta: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

I'm excited to have an open source app that connects me with someone who uses Venmo directly between driver and client.  The security will be that the app will have to link to a properly maintained bank or lending institution, so at the least there won't be anonymity for the driver.  Maybe the app has a GPS cache for the trip that saves for a week to my home cloud, so at least they know where my body is buried. Closure!


I always wondered way a company hasn't come along and made an Uber like app/service that just gets you a regular taxi? You wouldn't have to worry about the cost and regulatory problems of maintaining this army of 'contractor' drivers.
 
2022-08-02 12:12:03 PM  

Rage Against the Thorazine: deadsanta: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

I'm excited to have an open source app that connects me with someone who uses Venmo directly between driver and client.  The security will be that the app will have to link to a properly maintained bank or lending institution, so at the least there won't be anonymity for the driver.  Maybe the app has a GPS cache for the trip that saves for a week to my home cloud, so at least they know where my body is buried. Closure!

I always wondered way a company hasn't come along and made an Uber like app/service that just gets you a regular taxi? You wouldn't have to worry about the cost and regulatory problems of maintaining this army of 'contractor' drivers.


These apps do exist. Probably a matter of initial installation, maintenance, training, etc.  Same as any other tool.  Plus, cabbies probably don't want to use them and will blame the app for anything that goes awry.
 
2022-08-02 12:17:54 PM  

valkore: These apps do exist. Probably a matter of initial installation, maintenance, training, etc. Same as any other tool. Plus, cabbies probably don't want to use them and will blame the app for anything that goes awry.


A lot of cabbies wouldn't like the app because it doesn't allow you to rip off the client (taking ridiculous route), or rip off the company (turning the meter off), etc.
 
2022-08-02 12:19:57 PM  

trialpha: valkore: These apps do exist. Probably a matter of initial installation, maintenance, training, etc. Same as any other tool. Plus, cabbies probably don't want to use them and will blame the app for anything that goes awry.

A lot of cabbies wouldn't like the app because it doesn't allow you to rip off the client (taking ridiculous route), or rip off the company (turning the meter off), etc.


Correct.  The stink that DC cabbies made when the district moved from its antiquated zone map to metering was incredible.  A cabby doesn't want you to know where he is or what he's doing.

Kind of like having screen capture software on each office worker's PC.  Nobody wants that because it'll make slacking off a lot more difficult.
 
2022-08-02 12:22:58 PM  

valkore: Rage Against the Thorazine: deadsanta: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

I'm excited to have an open source app that connects me with someone who uses Venmo directly between driver and client.  The security will be that the app will have to link to a properly maintained bank or lending institution, so at the least there won't be anonymity for the driver.  Maybe the app has a GPS cache for the trip that saves for a week to my home cloud, so at least they know where my body is buried. Closure!

I always wondered way a company hasn't come along and made an Uber like app/service that just gets you a regular taxi? You wouldn't have to worry about the cost and regulatory problems of maintaining this army of 'contractor' drivers.

These apps do exist. Probably a matter of initial installation, maintenance, training, etc.  Same as any other tool.  Plus, cabbies probably don't want to use them and will blame the app for anything that goes awry.


It looks like those apps are solutions for taxi companies to manage their own fleets. I'm thinking something more along the lines of Uber except only open to licensed and insured taxis. Riders wouldn't have to deal with figuring out which taxi company to contact, it would be done through a centralized app/service like Uber but without the sketchy amateur drivers.
 
2022-08-02 12:25:36 PM  

Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?


How do you quantify this?
 
2022-08-02 12:32:03 PM  
Just ride the public transit with all the smelly people and drugged up crazies with there polka music on full blast like the rest of us.
 
2022-08-02 12:36:51 PM  

Rage Against the Thorazine: It looks like those apps are solutions for taxi companies to manage their own fleets. I'm thinking something more along the lines of Uber except only open to licensed and insured taxis. Riders wouldn't have to deal with figuring out which taxi company to contact, it would be done through a centralized app/service like Uber but without the sketchy amateur drivers.


Then that centralized app/service would control the cab company's destiny.  You'd be working in partnership with your direct competitors, other cab companies.  Guessing the cabbies would need to agree upon rates and revenue sharing at some level.  And the cost of rides would probably go up if they pass costs down to riders.

But maybe it would work?  Perhaps some Uber competitor (there are many more than Lyft) will change its model and partner with cabs directly.

But that's not exciting. Self-driving, flying cars are exciting.  And VCs are going to throw their money at shiny stuff rather than practical stuff.
 
2022-08-02 12:40:33 PM  

HotWingConspiracy: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

How do you quantify this?


In DC before Uber, you left the airports (IAD/DCA/BWI) in one of these ways: hired black car/limo, rideshare van, airport sponsored cab, and "other".  "Other" was basically a guy who slapped a number on his car and pretended to be a cab driver but was basically driving his personal car and picking up unsuspecting folks.  It was bad enough that announcements in luggage claim warned people not to get into those cars.

So, more qualitative than quantitative, but even more shady for sure.
 
2022-08-02 1:00:51 PM  

Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?


I feel like Fark is like 25% Yellow Cab drivers pissed off their medallions are losing value and they actually had to get a credit card machine instead of trying to bully you into paying for a drive to an atm
 
2022-08-02 1:10:25 PM  
I always thought Uber would be the first to implode with the correction.  They're nothing but a Ponzi scheme.
 
2022-08-02 1:40:53 PM  

valkore: Rage Against the Thorazine: It looks like those apps are solutions for taxi companies to manage their own fleets. I'm thinking something more along the lines of Uber except only open to licensed and insured taxis. Riders wouldn't have to deal with figuring out which taxi company to contact, it would be done through a centralized app/service like Uber but without the sketchy amateur drivers.

Then that centralized app/service would control the cab company's destiny.  You'd be working in partnership with your direct competitors, other cab companies.  Guessing the cabbies would need to agree upon rates and revenue sharing at some level.  And the cost of rides would probably go up if they pass costs down to riders.

But maybe it would work?  Perhaps some Uber competitor (there are many more than Lyft) will change its model and partner with cabs directly.

But that's not exciting. Self-driving, flying cars are exciting.  And VCs are going to throw their money at shiny stuff rather than practical stuff.


I'm thinking it would be similar to Uber in that drivers would just use the app to indicate when they're available for calls and their current rates but wouldn't be required to use the service exclusively. The company could just take a commission for referring those calls to the taxis. Riders could see the taxis available in their area, their rates and pick the taxi they want.
 
2022-08-02 2:14:44 PM  

valkore: HotWingConspiracy: Leader O'Cola: So for people cheering Ubers death, are you excited to go back to getting picked up by even more shady cabs at the airport?

How do you quantify this?

In DC before Uber, you left the airports (IAD/DCA/BWI) in one of these ways: hired black car/limo, rideshare van, airport sponsored cab, and "other".  "Other" was basically a guy who slapped a number on his car and pretended to be a cab driver but was basically driving his personal car and picking up unsuspecting folks.  It was bad enough that announcements in luggage claim warned people not to get into those cars.

So, more qualitative than quantitative, but even more shady for sure.


That sounds like a situation that was easily avoidable before uber existed.
 
2022-08-02 3:52:49 PM  
How is Uber losing money?

As far as I know the drivers are contractors and the app is already developed.

What are they spending so much money on that they can't turn a profit?

/sure, I *could* go read their financials statements but I'm pretty lazy
 
2022-08-02 5:14:33 PM  

TheFoz: How is Uber losing money?

As far as I know the drivers are contractors and the app is already developed.

What are they spending so much money on that they can't turn a profit?

/sure, I *could* go read their financials statements but I'm pretty lazy


They subsidize every ride because they hope to corner the market and then jack the prices up.

/Because driving someone from one place to another has such high barriers to entry...
 
2022-08-02 7:00:47 PM  
How the fark are they not making money hand over fist selling data on where people go?

Tesla too "should" be killing it selling data on all of its high-net-worth owners' driving activity. Unless it's just disproportionately filled with when, where, and how people go to Whole Foods, and they don't want to hand that over to Amazon.
 
2022-08-02 8:04:49 PM  

Yankees Team Gynecologist: How the fark are they not making money hand over fist selling data on where people go?

Tesla too "should" be killing it selling data on all of its high-net-worth owners' driving activity. Unless it's just disproportionately filled with when, where, and how people go to Whole Foods, and they don't want to hand that over to Amazon.


Pretty sure Apple has top billing for location data.
 
2022-08-02 8:36:16 PM  
Didn't their revenue go up because of the increased driver costs?
 
2022-08-03 7:45:55 AM  
2.6 billion in one quarter. That must have been a hell of a meeting when  when they calculated that out and had to report to the C level.
 
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