Uber

[SkyRider]

1) Apparently, Uber threatened to leave Toronto forever if new rules are implemented. Is this an empty threat?

2) Despite a net worth of $50 billion, Uber is unprofitable. How can a $50 billion company be unprofitable?

"Aug 5, 2015 - New revenue figures show $50 billion Uber is losing a lot of money. ...Uber has traditionally been tight-lipped about its finances, but a new leaked document, obtained by Gawker's Sam Biddle, suggests the $50 billion company is wildly unprofitable. ... This is hardly news and old news at ..."
http://www.businessinsider.com/ubers-revenue-profit-and-loss-2015-8

 

[spaman]

you cant stop what coming, they just need to play fair

 

[explorerzip]

1) Apparently, Uber threatened to leave Toronto forever if new rules are implemented. Is this an empty threat?

2) Despite a net worth of $50 billion, Uber is unprofitable. How can a $50 billion company be unprofitable?

"Aug 5, 2015 - New revenue figures show $50 billion Uber is losing a lot of money. ...Uber has traditionally been tight-lipped about its finances, but a new leaked document, obtained by Gawker's Sam Biddle, suggests the $50 billion company is wildly unprofitable. ... This is hardly news and old news at ..."
http://www.businessinsider.com/ubers-revenue-profit-and-loss-2015-8

There's basically nothing other than app development to their business. And it's fairly easy for another competitor to do the exact same thing and charge less.

 

[NHFL]

1) Apparently, Uber threatened to leave Toronto forever if new rules are implemented. Is this an empty threat?

2) Despite a net worth of $50 billion, Uber is unprofitable. How can a $50 billion company be unprofitable?

"Aug 5, 2015 - New revenue figures show $50 billion Uber is losing a lot of money. ...Uber has traditionally been tight-lipped about its finances, but a new leaked document, obtained by Gawker's Sam Biddle, suggests the $50 billion company is wildly unprofitable. ... This is hardly news and old news at ..."
http://www.businessinsider.com/ubers-revenue-profit-and-loss-2015-8

You need to learn some basic finance. I read the article you posted:

"Uber has traditionally been tight-lipped about its finances, but a new leaked document, obtained by Gawker's Sam Biddle, suggests the $50 billion company is wildly unprofitable."

You are somehow assuming that a networth of $50 Billion dollars equates to cash-flow. My highlight of $50 Billion does not state anything about what that $50 Billion is. Is it revenue, profit, estimated worth? It is, as you will see, likely estimated net worth, which means that a company can still lose money on its operations. It's like me saying I live in a $2 Million dollar house, but I lost my job and am not bringing in any money to support my day-to-day living.

Proof of what I asset above comes from many other quotes in the article, which include:

"Uber's net revenue in the first and second quarters of 2013 was a combined $32 million, according to the document, and its numbers for the second half of the year were about $72 million, bringing its 2013 annual revenue to $104 million in total.

In this case, Uber's net revenue is the amount the company keeps from each ride, not how much each ride actually costs with the driver's cut in it.

In the first and second quarters of 2014, the documents show Uber generating about $102 million, nearly as much as the entire year prior.

Gawker's documents also show that while the company's revenue has been growing quarter over quarter, its losses are also increasing. Its losses in 2012, according to Biddle, totaled $20.4 million. In the first half of 2013 the company lost more than $15 million."

So that's how a $50 Billion company loses money.

And keep in mind, it's only worth $50 Billion when someone actually pays $50 billion for it.

 

[TESLAMotors]

There is no way in hell that company is worth $50 billion, I'm not into business and economics all that much, but there's just no way Uber's valuation is even remotely accurate.
Give or in this case, take $40 billion, then maybe I wouldn't doubt it, but $50? lol

Like explorer said, someone else can develop an app and a system similar to it, then what?

 

[SkyRider]

Like explorer said, someone else can develop an app and a system similar to it, then what?

I think Uber already has at least one competitor in several cities (not yet in Toronto).

Regarding valuation, I seem to remember Amazon was losing money but it's stock price kept rising.

 

[Rob_Latex]

There is no way in hell that company is worth $50 billion, I'm not into business and economics all that much, but there's just no way Uber's valuation is even remotely accurate.
Give or in this case, take $40 billion, then maybe I wouldn't doubt it, but $50? lol

Like explorer said, someone else can develop an app and a system similar to it, then what?

It's not up to you to decide how much it's worth. That's the job of those actually investing in Uber, and THEY have decided to give a $50B valuation.

On a simplified level,

Investor: I'd like to buy 1% of your company
Uber: That will be $500million, please
Investor: OK

And, boom, Uber is worth $50B

 

[SkyRider]

It's not up to you to decide how much it's worth. That's the job of those actually investing in Uber, and THEY have decided to give a $50B valuation.

Who are the people bankrolling Uber?

 

[SchlongConery]

Like explorer said, someone else can develop an app and a system similar to it, then what?

Then they only have to get traction, build a client base, create a human resources and technology infrastructure, go many years with negative cash flow etc etc.

Yeah... nothin' to it! Wait until someone figures this out and creates another ride sharing app... boy is Uber gonna be surprised!

 

[SchlongConery]

Who are the people bankrolling Uber?

I understand it is mostly tech and VC billionaire-types who threw in relative small (to them) investments with the hopes that it would be a blockbuster in time. These guys can afford to throw $10-$50m into some flyer and see it it takes off. It is fun for them.

 

[Insidious Von]

These valuations are smoke and mirrors and for the sake of investment, they've gotten an easy ride. But eventually insurance companies and municipal licensing will want their slice of the pie. How many Uber drivers actually have a commercial vehicle license? Uber is worth $10 million at best.

 

[SkyRider]

http://www.zacks.com/stock/news/207881/who-are-ubers-biggest-competitors

 

[TESLAMotors]

It's not up to you to decide how much it's worth. That's the job of those actually investing in Uber, and THEY have decided to give a $50B valuation.

On a simplified level,

Investor: I'd like to buy 1% of your company
Uber: That will be $500million, please
Investor: OK

And, boom, Uber is worth $50B

Did a search, here you go.
https://www.crunchbase.com/organization/uber


So these guys invest early, then Uber has an IPO, people buy stock, get into the hype, and these original investors will cash out and that's it I'm guessing.

 

[TESLAMotors]

I understand it is mostly tech and VC billionaire-types who threw in relative small (to them) investments with the hopes that it would be a blockbuster in time. These guys can afford to throw $10-$50m into some flyer and see it it takes off. It is fun for them.

Kinda twisted to say "throw $10-50 million and see if it takes off...............it is fun for them". SMH.

 

[Smallcock]

There's basically nothing other than app development to their business. And it's fairly easy for another competitor to do the exact same thing and charge less.

Fairly easy only if a competitor has financial investors willing to lose tens of millions. The margins are obviously very tight already, so charging less would mean even less revenue to work with.

 

[SchlongConery]

Kinda twisted to say "throw $10-50 million and see if it takes off...............it is fun for them". SMH.

I know a couple people that do exactly ​that! These guys throw around tens of millions of dollars like you and I decide on buying a couple suits.

 

[SashaRose]

You need to learn some basic finance. I read the article you posted:

"Uber has traditionally been tight-lipped about its finances, but a new leaked document, obtained by Gawker's Sam Biddle, suggests the $50 billion company is wildly unprofitable."

You are somehow assuming that a networth of $50 Billion dollars equates to cash-flow. My highlight of $50 Billion does not state anything about what that $50 Billion is. Is it revenue, profit, estimated worth? It is, as you will see, likely estimated net worth, which means that a company can still lose money on its operations. It's like me saying I live in a $2 Million dollar house, but I lost my job and am not bringing in any money to support my day-to-day living.

Proof of what I asset above comes from many other quotes in the article, which include:

"Uber's net revenue in the first and second quarters of 2013 was a combined $32 million, according to the document, and its numbers for the second half of the year were about $72 million, bringing its 2013 annual revenue to $104 million in total.

In this case, Uber's net revenue is the amount the company keeps from each ride, not how much each ride actually costs with the driver's cut in it.

In the first and second quarters of 2014, the documents show Uber generating about $102 million, nearly as much as the entire year prior.

Gawker's documents also show that while the company's revenue has been growing quarter over quarter, its losses are also increasing. Its losses in 2012, according to Biddle, totaled $20.4 million. In the first half of 2013 the company lost more than $15 million."

So that's how a $50 Billion company loses money.

And keep in mind, it's only worth $50 Billion when someone actually pays $50 billion for it.

You make a very valid point $50 bill isn't necessarily yearly income or revenue of some sort it can more than likely be a number for something else. I talk to über drivers and they say the company takes %20 of what they make.

I hope they don't go tho. They were the most convenient ride service.

 

[NHFL]

You make a very valid point $50 bill isn't necessarily yearly income or revenue of some sort it can more than likely be a number for something else. I talk to über drivers and they say the company takes %20 of what they make.

I hope they don't go tho. They were the most convenient ride service.

I have travelled extensively in Manhattan and love it there. I also hate Toronto Taxi drivers. The quality of car is awful as are the drivers. I hope Uber stays as well.

One thing I don't like about Uber though - premium pricing.

 

[nobody123]

UBER is a big fat leech that sucks money out of a city and sends it to owners/investors abroad. No better than Air BnB. Both companies go around happyspeaking about innovation and disruption, but what their business model boils down to is they undercut legitimate industry players because they a) don't pay any of the licensing fees and taxes that the legitimate cabs (or hotels) are forced to pay and b) don't actually hire their local workforce (prefering subcontracting, just like temp agencies) and so can take a pass on minor details like paying a living wage or vetting their workers to weed out the more rape-y ones. Meanwhile, the fees/taxes/ etc paid by traditional cab companies and hotels (and dodged by the UBERs of the world) help pay for infrastructure and services that make your city a more attractive tourist destination than, say, Lagos. Fuck UBER.

 

[fuji]

I love Uber. Best thing that ever happened to the taxi industry. So much better!