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Uber & Lyft Cracks are starting to show

Discussion in 'Miami' started by BAKAD, Aug 22, 2016.

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  1. Uslave

    Uslave Member

    Location:
    Miami
    Uber is very smart....They basically paying to replace 20% commission drivers with 25%.
     
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  2. Uberdrivingsux

    Uberdrivingsux Well-Known Member

    Location:
    North miami
    I'm not sure how Special Fool rates don't qualify as a subsidy . Under your definition , we are getting paid more than what Ewwber is charging, thus its a subsidy.
     
    Last edited: Nov 8, 2016
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  3. Uberdrivingsux

    Uberdrivingsux Well-Known Member

    Location:
    North miami
    The COA is gonna be pretty high when it's the same cheapskates taking advantage of Uberfool . People , just say No to Uberfool!
     
  4. phuseche

    phuseche Well-Known Member

    Location:
    Miami
    Driving:
    UberX
    Easy. If something has an agreed price of $5 and it is sold for $2 (like a UberPool promotion), the $3 discount is a subsidy to the buyer (the pax is the buyer not the driver). The offer is Uber's idea; you do the same work as before and get paid the same as before; you are not part of the promotion. However the company pays the provider of the service (the driver) more than the agreed share of $4 (for example $7 when offering an hourly guarantee), the $3 surplus paid is now a subsidy to the driver.

    When you discount your selling price you are not subsidizing the drivers.
     
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  5. Uberdrivingsux

    Uberdrivingsux Well-Known Member

    Location:
    North miami
    I see your point . From reading the Bloomberg piece , it's sounds like this guy Gupta is counting it as a driver subsidy.
     
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  6. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    Here's the bottom line on all on all of this.

    No company can sustain the losses Uber has for any length of time.

    Loosing $211.6M (article here) a month or $2,539,200.00 per year on revenues of $2,000,000.00 per month (article here) or $24,000,000.00 a year.

    The losses pile up and eat all of Uber's cash

    1 year $2.5B
    2 years $5B
    3 years $7.5B
    4 years $10B
    They have to fix the cash burn.

    Eventually, Uber is going to run out of ways to obtain more cash. Uber has to get profitable.
     
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  7. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    Uber's flying machines, well the national press didn't bite. In fact, they pretty much killed the idea as a pipe dream for now.

    Just more of smoke and mirrors by Uber - Watch out Uber the press is slowly catching on to this.

    Article here
     
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  8. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    New Article.....It says for each ride (the passenger) is only paying for 41% of the cost of the ride.

    Article here


    Interesting comment

    "Uber passengers were paying only 41 percent of the actual cost of their trips; Uber was using these massive subsidies to undercut the fares and provide more capacity than the competitors who had to cover 100 percent of their costs out of passenger fares."

    It's like:

    Say you have a product and it cost $1.00 to make for 1000 units. You go an dropped the price to gain "economy of scale" to drive the manufacturing cost down and to gain market share. But the unit cost only goes down to $.80 for 2 billion units, but you keep selling it at $.40 each.

    "Let's make more we will make it up on volume?"

    Uber and public transportation:

    In this article and I have read in other articles where Uber is trying to compete and be more like public transportation. The strategy is to get the Millennials and the next up & coming younger generation (high school kids, sounds familiar) hooked on Uber. They use Uber and forgo buying a car and use Uber instead of local public transportation. This is one reason for Uber's low cost strategy.

    Just one thing Uber. Public transportation is so cheap because we the masses subsided it.

    The rider/passenger fare is set based on what they can afford not the real cost.

     
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  9. ABC123DEF

    ABC123DEF Well-Known Member

    Location:
    Southeastern USA
    Driving:
    UberX
    Maybe it's time to start the onboarding on the 30%-ers plus a $3.00 booking fee. And for the rest of you...no winter warm-up in January 2017. Uber the eff on!
     
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  10. tohunt4me

    tohunt4me Well-Known Member

    Location:
    new orleans , la.
     

    Attached Files:

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  11. d0n

    d0n Well-Known Member

    Location:
    Mongolia
    Time to up the fares without paying the driver, welcome to upfront fees.

    That is until they get sued again, as the case with the tips.

    Horrible corporation management, clearly they need replacements.
     
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  12. TheAntMiami

    TheAntMiami Active Member

    Location:
    Miami Beach
    Because with pool, the average fare is much lower.
     
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  13. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    Todays article WSJ Uber lost $800M or $240M per month in the 3rd quarter it doesn't include the China loss. And sales of $1.7M for the quarter.

    Article WSJ

    Article Bloomberg (in case the WSJ does not work)
     
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  14. makes_sense

    makes_sense Well-Known Member

    Location:
    miami
  15. makes_sense

    makes_sense Well-Known Member

    Location:
    miami
  16. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    Good article!
     
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  17. makes_sense

    makes_sense Well-Known Member

    Location:
    miami
    Yeah there's a few more didn't have time to post Juno's future is looking bright especially if Ubers employees start deserting them
     
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  18. BAKAD

    BAKAD Active Member

    Location:
    Fort Lauderdale
    Driving:
    UberX
    An article on Uber says it could be difficult to do an IPO with the amount of debt Uber has and mentions "bankruptcy" as an outcome.

    Not good for Uber.

    Article here
     
    Last edited: Jan 12, 2017
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  19. Milito

    Milito Well-Known Member

    Location:
    Miami
    I was gonna sell my medallion for $250k but in that case I'll sell it for $2 million plus royalty. I think is fair, please tell Travis to contact me
     
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  20. joebo1963

    joebo1963 Member

    Location:
    Fort Lauderdale
    No matter how you calculate it drivers lose...... Uber and or Lyft raise prices then more people drive and not many pings.......
     
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