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Once Again, NYC Data Shows Resilience Of Taxi Medallions

Michael - Cleveland

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Once Again, NYC Data Shows Resilience Of Taxi Medallions
http://seekingalpha.com/article/3448986-once-again-nyc-data-shows-resilience-of-taxi-medallions

Aug. 18, 2015 2:17 PM ET
Larry Meyers, PDL Capital

(disclosure: author is LONG on TAXI - a public company which finances medallions)

Two articles over the weekend, one in the NY Daily News and another in the Economist, have provided more clarity about the UberX vs. taxi situation in New York. As I've long stated, concerns over taxi medallion values and the ability of taxi medallion borrowers to service loans are vastly overblown.

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To read the full text of the article visit the link above.
 

Michael - Cleveland

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  • #2
>>>When a company tells you it has 20,000 drivers, and later tells you that only 10% of them are actually on shift, that may explain why the company is seeing hefty losses.<<<

I can't believe that someone this knowledgeable of all things cab & rideshare does not understand that Uber could have 1 million drivers in NYC and it would not cost them a penny unless and until a rider was both "on-shift" AND had a paying rider in the car. Am I missing something?
 

Brooklyn

Well-Known Member
>>>When a company tells you it has 20,000 drivers, and later tells you that only 10% of them are actually on shift, that may explain why the company is seeing hefty losses.<<<

I can't believe that someone this knowledgeable of all things cab & rideshare does not understand that Uber could have 1 million drivers in NYC and it would not cost them a penny unless and until a rider was both "on-shift" AND had a paying rider in the car. Am I missing something?
The guarantees from Uber that they pay out to drivers?
Free trips?
The overhead? Like the employees and then stuff like the servers and etc..
For a company with over $6 billion invested in it making no money means losing money.
 

TwoFiddyMile

Well-Known Member
>>>When a company tells you it has 20,000 drivers, and later tells you that only 10% of them are actually on shift, that may explain why the company is seeing hefty losses.<<<

I can't believe that someone this knowledgeable of all things cab & rideshare does not understand that Uber could have 1 million drivers in NYC and it would not cost them a penny unless and until a rider was both "on-shift" AND had a paying rider in the car. Am I missing something?
Most of Uber's losses revolve around lawsuits, overhead like office expenses, and payola for municipalities.
At last count, Uber loses 1 million per quarter conservatively. They are not and have never been a profit generating company, they are in the red.
 

Michael - Cleveland

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  • #5
Since Uber is not a public company and publishes only unaudited financial information that it sees fit to share, no one knows where their losses come from. I'm not saying you're wrong... just noting that it is opinion.
 

TwoFiddyMile

Well-Known Member
Since Uber is not a public company and publishes only unaudited financial information that it sees fit to share, no one knows where their losses come from. I'm not saying you're wrong... just noting that it is opinion.
Absolutely conjecture.
However its an educated guess, after 10 years of running small transportation companies.
Uber has no vehicle overhead.
All it takes to make profit is to take in more revenue than expense.
 

Michael - Cleveland

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  • Thread Starter Thread Starter
  • #7
its an educated guess, after 10 years of running small transportation companies....
All it takes to make profit is to take in more revenue than expense.
well, your conjecture is as good as anyone's...
but you're ignoring the tech infrastructure and the service element being built out on a global level to operate in more than 250 cities, in more than 50 countries (and many, many languages)... and everything that entails.
 

TwoFiddyMile

Well-Known Member
well, your conjecture is as good as anyone's...
but you're ignoring the tech infrastructure and the service element being built out on a global level to operate in more than 250 cities, in more than 50 countries (and many, many languages)... and everything that entails.
Yoda might say it better:
"More revenue make you must...
Expenditures lower than revenue they must be..."
All that drivel about tech platforms and multple cities on a global level is just UberSpeak.
Yoda.
Truth speak he does.
 
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