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Dirty Little Secrets

Maven

Well-Known Member
Uber has NEVER made a profit, not since day one.
Uber will NEVER make a profit with the current business model.
Riders pay only 75% of the cost.


This is from Bloomberg News and some very smart financial people, not me. Yet, very wealthy people keep pouring capital into Uber. Despite all of the above, Uber is valued at over $50 Billion (with a B).

OK, so it's not really a secret and it has been mentioned before in this forum. Yet most people, both drivers and riders, seem to be completely unaware of these facts. How can this make sense and be understood?

Uber has a virtual monopoly in market share, both drivers and riders. Their market share is growing every day, despite the best efforts of Lyft and other competitors. That's not just in the USA, but around the world, except for China. Building market share is Uber's main focus and goal. Uber has been wildly successful. Secondary, of course, is to slow their rate of financial losses. To understand why Uber does something that seems strange, you need only remember these two goals.

Uber lost $1.2 Billion the first half of 2016.
Uber lost $800 million the 3rd quarter of 2016 on 1.7 billion net revenue.​

Uber is betting on autonomous vehicles to make their current business model profitable.

Autonomous vehicles (sometime called Robo-cars) are the future. Companies like Ford Motors are investing billions to make them a reality. Autonomous vehicles are being tested today in the USA. Public resistance to new technologies and the resultant political unpopularity may be overcome will enough time and money.

Both Rideshare (including Uber) and Taxi drivers will be largely replaced by the new technology of autonomous vehicles. For once, Rideshare and Taxi drivers will be united in advocating resistance to autonomous vehicles. That resistance may delay implementation, but ultimately they will lose. Only Limo drivers may survive because the rich will pay for the status of a human driver.

Now you know the "secret". For more see: https://uberpeople.net/forums/Autonomous/
 

circle1

Well-Known Member
Autonomous vehicles/SDC have been discussed extensively in the Autonomous forum.

In my opinion the evidence and subjective consensus is that SDC are not currently practical in wide-spread use. Too many problem and hurdles to clear. For the meantime, it's all so much window dressing & hype. Like a shiny object that dazzles a toddler.
 

Maven

Well-Known Member
  • Thread Starter Thread Starter
  • #5
Not FIFY (Fixed It For You) because there is nothing broken ... TODAY ... I agree completely with
... the evidence and subjective consensus is that SDC are not currently practical in wide-spread use. Too many problem and hurdles to clear. For the meantime, it's all so much window dressing & hype. Like a shiny object that dazzles a toddler.
However, TOMORROW, not so much ...

Too many powerful people have invested too much money already (Billions) for this to work. Each of the many valid, confirmed problems and hurdles you cite with autonomous vehicles has a solution that requires only time and more money to implement.

The politics will be a more difficult hurdle than the technology. However, there is no comparable countervailing force that might do more then delay the inevitable. Rideshare drivers are just beginning to get organized and have little or no political powers. Taxi drivers are organized into the NTWA (NYTWA in NYC), but are focused on fighting rideshare drivers today, not their long-term problem, autonomous vehicles. Even when they finally combine forces because of shared interests, it will be too little, too late. Their political power will be dwarfed by the powers committed to the success of autonomous vehicles.

It will not be quick, perhaps 5 to 10 years, perhaps more, but autonomous vehicles will become viable, both technologically and politically. Rideshare and Taxi drivers will all become workers displaced by another new technology.

Sorry to be so gloomy, but that is my analysis. So if you want long term financial security then save your $$ to invest in the eventual Uber IPO. Once SDC are practical, Uber will finally become profitable then the initial investors will do an IPO to cash in on their investment.
 

UubSaibot

Active Member
If AOL failed, ANY company can fail. If Uber keeps the BS going, they will fail. By the time autonomous cars come out, if they ever do, cars will be like cell phones. Tesla already is slated to release a $30k vehicle. Other companies will follow suit. By this time, Uber's fees would have gone thru the roof, unless the have executive clients, movie stars, athletes, and other celebs riding around in autonomous Maybachs and Rolls Royces and the common folks would be more than able to afford transportation by this time. Unless they get government subsidies, then it will tank.
 
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