Uber is expected to begin another huge round of layoffs, cutting thousands more jobs just weeks after laying off 14% of its workforce

Lute Byrt

Well-Known Member
GETS buggy?
What has their app development team done for the last two years? Was reduction of our pay part of the development? How did that turn out for ya (Uber)? I have not seen any differences in systems since the downfall began...Looks like the US, lost a bunch of dead weight and it will not be a "New World Order", simply a better "Different Operation Directive"....Is that clear???!.....
 

observer

Well-Known Member
Moderator
Remote working will have some impact in SF, NYC, Seattle and few others places . Rents should go down in these places . 😄 Companies can hire the best talent and offer them to work remote. Some prefer to go to SF, NYC, Seattle and pay the extra rent. Now the question is do the companies pay the same SF salary 😄
Cost for a company to send somebody to another city for a few days is around 1000$👍.
What if it is Tokyo🤔 it might be 2500$. Instead of 20 trips , maybe 10 trips = 25,000$ savings.

They can also save money on office space . Maybe a 20% reduction in square footage cost.
AAPL- AAPL campus cost is close to 10 billion, so don’t expect a big shift from them 😄
About 15 years ago we rented a space from the City that cost us 125K dollars a month. It was a couple huge rundown tin buildings and some acreage.

Many years later Uber rented part of the same space. The tin buildings were the same tin buildings but "gentrified". I wonder what they paid in rent.
 

Lute Byrt

Well-Known Member
About 15 years ago we rented a space from the City that cost us 125K dollars a month. It was a couple huge rundown tin buildings and some acreage.

Many years later Uber rented part of the same space. The tin buildings were the same tin buildings but "gentrified". I wonder what they paid in rent.
Tax write off...
 

2Cents

Well-Known Member
8F0D2690-F752-4B35-AB15-0B76B35E1C59.jpeg
 

jocker12

Well-Known Member
Uber paid drivers too much at the start
From the business point of view (which says to charge the customer the maximum he/she is agreeing to pay - so the only work is to identify how much a customer is willing to pay), this is incorrect.

because they were actually creating the rideshare business.
No. Because they afforded to operate at a loss because of the billions taken from the investors and because their goal was to kill their competition. If Uber would've been forced to operate on their actual profits, they would have died in less than a month. Even today, when they retain a lot more money percentage-wise, punishing the drivers by giving them "too little" (as you say), they have no formula to make a profit. Why? Because the costs involved with their operations (believe it or not - they have no involved assets and the drivers pay in full for fuel, insurance, and vehicles maintenance) are way too high for the output of their rideshare business print considering their size (salaries and office rent) and what servers, system maintenance and the number of engineers needed to keep up the network 24/7 requires.

In other words, there is (and it always be) a conflict between their size (which needs to be as small as possible - but it cannot be that way) and the operational costs (which also need to be as small as possible - but run at a very high level). This is the reason Amazon (to give only one example) built its own physical servers and now offers web and cloud services to clients. They have a huge amount of data that, in case it wouldn't be stored and maintained "in house" sort of speak (at the lowest possible cost), it would drastically affect their expenses.

Also, this is mainly the reason the business needs to be as small and as focused (on one main service) as possible. The more other services they've added, in order to compensate (in their delusional minds) for the rideshare losses, the more their expenses increased. And increased. And increased.

Their "growth" facade was only for their investors, that wanted growth to support and spread the idea of a popular service with huge "potential". Remember the word "POTENTIAL"? It's not an Uber or a self-driving cars service descriptive term anymore.
 
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goneubering

Well-Known Member
From the business point of view (which says to charge the customer the maximum he/she is agreeing to pay - so the only work is to identify how much a customer is willing to pay), this is incorrect.


No. Because they afforded to operate at a loss because of the billions taken from the investors and because their goal was to kill their competition. If Uber would've been forced to operate on their actual profits, they would have died in less than a month. Even today, when they retain a lot more money percentage-wise, punishing the drivers by giving them "too little" (as you say), they have no formula to make a profit. Why? Because the costs involved with their operations (believe it or not - they have no involved assets and the drivers pay in full for fuel, insurance, and vehicles maintenance) are way too high for the output of their rideshare business print considering their size (salaries and office rent) and what servers, system maintenance and the number of engineers needed to keep up the network 24/7 requires.

In other words, there is (and it always be) a conflict between their size (which needs to be as small as possible - but it cannot be that way) and the operational costs (which also need to be as small as possible - but run at a very high level). This is the reason Amazon (to give only one example) built its own physical servers and now offers web and cloud services to clients. They have a huge amount of data that, in case it wouldn't be stored and maintained "in house" sort of speak (at the lowest possible cost), it would drastically affect their expenses.

Also, this is mainly the reason the business needs to be as small and as focused (on one main service) as possible. The more other services they've added, in order to compensate (in their delusional minds) for the rideshare losses, the more their expenses increased. And increased. And increased.

Their "growth" facade was only for their investors, that wanted growth to support and spread the idea of a popular service with huge "potential". Remember the word "POTENTIAL"? It's not an Uber or a self-driving cars service descriptive term anymore.

Uber makes money on rideshare. It’s their other divisions like Eats and SDCs that have been dragging the whole company down.
 

jocker12

Well-Known Member
Uber makes money on rideshare. It’s their other divisions like Eats and SDCs that have been dragging the whole company down.
I just commented about a lot of costs (and believe me, I've looked into this) involved with app-based rideshare operations..

Some media outlets wrote about this - "Uber makes money on rideshare." Do you remember their conclusion?

"Uber's rides made a profit if you ignore interest, depreciation, and other costs."

from


Meanwhile, we are looking at a company that, from its inception, burned how many billions? 18? 20? 22?
 

WokeUP

Well-Known Member

Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group.


  • Uber is not done with its layoffs and employees are bracing for another round on Monday, someone familiar with the matter tells Business Insider.
  • This person says that thousands more will be cut from Uber's payroll.
  • Uber also told employees last week about their severance package: 10 weeks plus paid healthcare until the end of the year, the person tells Business Insider.
  • Uber most recently cut 3,700 jobs, 14% of its total workforce, earlier in May.
Uber is expected to begin another round of layoffs on Monday, a source with knowledge of the situation tells Business Insider.

Business Insider could not confirm the number of people that will be let go, although this person said that Uber plans to cut thousands from its workforce. We cannot confirm that those cuts will all happen on Monday however, as Business Insider previously reported, at the global all-hands meeting about two weeks ago, CEO Dara Khosrowshahi told employees that it was finalizing layoff plans and staff would know about them within two weeks. The next day, it cut 3,700 employees.

Uber employed 28,600 global employees — 16,200 outside the United States — as of March 31, it said in an its last quarterly report filed to the SEC on May 8. The 3,700 jobs cut earlier this month accounted for about 14% of its total workforce, the company said.

When asked about the next round of layoff a company spokesperson said, "As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever."

If Khosrowshahi and team are not considering more layoffs at this time, then that two week-time frame that he warned about would be complete. However, sources at Uber that Business Insider has talked to are not convinced the layoffs are over, particularly if the reported acquisition of Grubhub occurs. In that case, Uber will almost certainly cut jobs as it consolidates overlapping roles within Uber Eats and Grubhub.

At the last all-hands meeting, Uber discussed the severance package being offered to the current crop of laid off employees: 10 weeks of pay and healthcare paid until the end of 2020, the source familiar said.

Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group, this person believes. Business Insider learned that the leader of the Freight unit, Lior Ron, did warn employees that there would be layoffs. The CEO of the self-driving car unit, Eric Meyhofer, also did not answer any questions about layoffs at the all-hands meeting last week.

But, the atmosphere at the all-hands was not all gloom and doom. Employees submit questions for the all-hands meetings in advance and vote on them. And one question that received many votes was asking senior leadership to name their "guilty pleasure" songs. So, at the all-hands meeting, Meyhofer enjoyed a discussion on that. While some people found a discussion about songs while some people are worried about their jobs to be "tone deaf" as one person told us, others enjoyed it.

Uber laid off 3,700 people about two weeks ago, on top of the cuts made when it shuttered certain international Uber Eats organizations, transferring others to its Middle East subsidiary Careem and laying off a third of Careem's employees. It also had multiple rounds of layoffs in 2019, cutting about 1,100 people. Should this next round of layoffs be as large as the one earlier this month, at around 4,000, Uber will have cut about 10,000 jobs from its payroll over the past year.

Are you an Uber insider with insight to share? Contact Julie Bort via email at [email protected] or on encrypted chat app Signal at (970) 430-6112 (no PR inquiries, please). Open DMs on Twitter @Julie188.
nice!
 

goneubering

Well-Known Member
I just commented about a lot of costs (and believe me, I've looked into this) involved with app-based rideshare operations..

Some media outlets wrote about this - "Uber makes money on rideshare." Do you remember their conclusion?

"Uber's rides made a profit if you ignore interest, depreciation, and other costs."

from


Meanwhile, we are looking at a company that, from its inception, burned how many billions? 18? 20? 22?

Uber’s stock was UP again today.

Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber’s ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company’s overall EBITDA margin is -57.58% compared to the sector median of 12.99%.
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Lute Byrt

Well-Known Member
Uber’s stock was UP again today.

Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber’s ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company’s overall EBITDA margin is -57.58% compared to the sector median of 12.99%.
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That just means when it falls (in the fall) it has that much more energy to be enjoyed! Think of the tallest roller coaster....The fun part is not climbing to the top...The thrill is in the fall...Falling does not hurt (it is actually pretty fun)...Hitting the ground does though!
 

jocker12

Well-Known Member
Uber’s stock was UP again today.

Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber’s ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company’s overall EBITDA margin is -57.58% compared to the sector median of 12.99%.
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Yes. This is about the Grubhub possible deal.

You probably already know about this - "Uber Technologies Inc.’s (UBER) latest stock offer for rival food delivery company GrubHub Inc. (GRUB) is said to have been rejected as merger talks continued over the weekend.
The Wall Street Journal reported that talks between Grubhub Chief Executive Officer Matt Maloney and Uber CEO Dara Khosrowshahi on Sunday indicated that Uber’s latest offer of 1.9 of its shares for each GrubHub share is too low. Khosrowshahi said he might see room to bump up the offer to 1.925 Uber shares. However, that is still well below the price GrubHub had been seeking, the report said." (https://finance.yahoo.com/news/uber-latest-takeover-offer-said-090620609.html)

because

"Earlier Tuesday, The Wall Street Journal reported that GrubHub proposed a deal in which its investors would have received 2.15 Uber shares for every share of GrubHub, valuing the company at roughly $6.25 billion." (https://www.marketwatch.com/story/uber-reportedly-rejects-all-stock-offer-to-buy-grubhub-2020-05-12)

From above "Four U.S. senators are pressuring the Federal Trade Commission and the Department of Justice to “closely monitor the negotiations” between Uber and food delivery giant Grubhub Seamless to merge their parasitic services into one market-dominating giant." (https://gizmodo.com/senators-demand-ftc-doj-scrutinize-potential-merger-of-1843576607)

The only way for Dara to achieve his Uber Eats absurd goals (if no first or second on the market, then out) is to swallow the competition because at this point the competition is way too strong to be beaten. What Uber has though, is a hypothetical value (the stock went up from $14 to $30 only on step by step assurances - enough cash in the bank and few rounds of massive layoffs) given by its investors because they believe his BS.

Khosrowshahi is going to sacrifice everything and anybody (in as small as possible steps investors will consider beneficial) in order to see the first dollar in profits.

Here is a great read about this comedy

James Titcomb summarized Uber’s overall situation for the Sydney Morning Herald last week: “For the company as a whole, which includes initiatives such as electric bike and scooter rentals and a cargo-trucking unit as well as rides and deliveries, its margins went from minus 16.5% at the end of last year to minus 18.8% at the start of this one ... despite the company significantly reining in its heavy marketing costs during the quarter.”

“To put it another way,” Titcomb wrote, “not only does Uber lose money for every dollar it makes, it is losing more money on every dollar it makes than it was three months ago.
 
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goneubering

Well-Known Member
Yes. This is about the Grubhub possible deal.

You probably already know about this - "Uber Technologies Inc.’s (UBER) latest stock offer for rival food delivery company GrubHub Inc. (GRUB) is said to have been rejected as merger talks continued over the weekend.
The Wall Street Journal reported that talks between Grubhub Chief Executive Officer Matt Maloney and Uber CEO Dara Khosrowshahi on Sunday indicated that Uber’s latest offer of 1.9 of its shares for each GrubHub share is too low. Khosrowshahi said he might see room to bump up the offer to 1.925 Uber shares. However, that is still well below the price GrubHub had been seeking, the report said." (https://finance.yahoo.com/news/uber-latest-takeover-offer-said-090620609.html)

because

"Earlier Tuesday, The Wall Street Journal reported that GrubHub proposed a deal in which its investors would have received 2.15 Uber shares for every share of GrubHub, valuing the company at roughly $6.25 billion." (https://www.marketwatch.com/story/uber-reportedly-rejects-all-stock-offer-to-buy-grubhub-2020-05-12)

From above "Four U.S. senators are pressuring the Federal Trade Commission and the Department of Justice to “closely monitor the negotiations” between Uber and food delivery giant Grubhub Seamless to merge their parasitic services into one market-dominating giant." (https://gizmodo.com/senators-demand-ftc-doj-scrutinize-potential-merger-of-1843576607)

The only way for Dara to achieve his Uber Eats absurd goals (if no first or second on the market, then out) is to swallow the competition because at this point the competition is way too strong to be beaten. What Uber has though, is a hypothetical value (the stock went up from $14 to $30 only on step by step assurances - enough cash in the bank and few rounds of massive layoffs) given by its investors because they believe his BS.

Khosrowshahi is going to sacrifice everything and anybody (in as small as possible steps investors will consider beneficial) in order to see the first dollar in profits.

Here is a great read about this comedy

James Titcomb summarized Uber’s overall situation for the Sydney Morning Herald last week: “For the company as a whole, which includes initiatives such as electric bike and scooter rentals and a cargo-trucking unit as well as rides and deliveries, its margins went from minus 16.5% at the end of last year to minus 18.8% at the start of this one ... despite the company significantly reining in its heavy marketing costs during the quarter.”

“To put it another way,” Titcomb wrote, “not only does Uber lose money for every dollar it makes, it is losing more money on every dollar it makes than it was three months ago.

I’m with you. Uber’s bleeding money because of so many stupid things they got into. Dara still hasn’t cut deeply enough to turn a profit. In my opinion of course.
 

jocker12

Well-Known Member
I’m with you. Uber’s bleeding money because of so many stupid things they got into. Dara still hasn’t cut deeply enough to turn a profit. In my opinion of course.
And here is another very interesting read


"UBER’s CEO Dara Khosrowshahi once sold UBER as the next Amazon, promising that “cars are to us what books are to Amazon.” Link here. Khosrowshahi, who was Barry Diller’s top salesman for a decade, pitched the taxi-hailing app, repackaged as “rideshare”, as simply the first step on a journey to global domination. UBER would enter and dominate “food delivery, freight, autonomous vehicles, and even buses and bikes”. Later, he added flying cars. By 2023, Khosrowshahi continued, UBER could run the entire transportation network for a city! As recently as UBER's latest 10-K, filed in February, UBER characterized its Freight business as "revolutionizing" the freight industry. And now they are simply going to shut it down? None of these promises have ever happened, of course, and with this week's forced retrenchment, likely never will."


"Uber is likely abandoning its ambitions to be a leader and create a revenue generating business in nearly every area besides its core taxi-hail and food delivery business. These early-non-core businesses, while inchoate and pre-revenue, gave investors hope that UBER was not just an old-fashioned transportation company making use of the latest technology - smartphone apps - but an actual technology company, with the same opportunity for horizontal expansion as Amazon. This hope was among the reasons why a negative cash burn of several billion dollars for a seemingly mundane business could turn into a $59 BN valuation. That hope is gone. "


"Stated another way, stock buyers have treated COVID-19 and its catastrophic impact on UBER’s revenues and margins as a net positive catalyst. This stands in stark contrast to the many other companies operating in and round UBER’s universe, including hotels, airlines, lodging, office space, and even other “unicorns"."


"The market is wrongly ascribing a $59 billion equity valuation for a Company that is collapsing its workforce, reigning in its growth ambitions, and signaling much diminished growth in the future, while it bleeds down cash to the tune of more than $5BN a year. It is faced with a nearly insurmountable $9 Billion junk debt pile.
With this week's announcements of strategy retrenchment and narrowing of its business opportunity, UBER is potentially worth $2.31 to $11.63 per share, compared to its current $34.48 price."
 

goneubering

Well-Known Member
And here is another very interesting read


"UBER’s CEO Dara Khosrowshahi once sold UBER as the next Amazon, promising that “cars are to us what books are to Amazon.” Link here. Khosrowshahi, who was Barry Diller’s top salesman for a decade, pitched the taxi-hailing app, repackaged as “rideshare”, as simply the first step on a journey to global domination. UBER would enter and dominate “food delivery, freight, autonomous vehicles, and even buses and bikes”. Later, he added flying cars. By 2023, Khosrowshahi continued, UBER could run the entire transportation network for a city! As recently as UBER's latest 10-K, filed in February, UBER characterized its Freight business as "revolutionizing" the freight industry. And now they are simply going to shut it down? None of these promises have ever happened, of course, and with this week's forced retrenchment, likely never will."


"Uber is likely abandoning its ambitions to be a leader and create a revenue generating business in nearly every area besides its core taxi-hail and food delivery business. These early-non-core businesses, while inchoate and pre-revenue, gave investors hope that UBER was not just an old-fashioned transportation company making use of the latest technology - smartphone apps - but an actual technology company, with the same opportunity for horizontal expansion as Amazon. This hope was among the reasons why a negative cash burn of several billion dollars for a seemingly mundane business could turn into a $59 BN valuation. That hope is gone. "


"Stated another way, stock buyers have treated COVID-19 and its catastrophic impact on UBER’s revenues and margins as a net positive catalyst. This stands in stark contrast to the many other companies operating in and round UBER’s universe, including hotels, airlines, lodging, office space, and even other “unicorns"."


"The market is wrongly ascribing a $59 billion equity valuation for a Company that is collapsing its workforce, reigning in its growth ambitions, and signaling much diminished growth in the future, while it bleeds down cash to the tune of more than $5BN a year. It is faced with a nearly insurmountable $9 Billion junk debt pile.
With this week's announcements of strategy retrenchment and narrowing of its business opportunity, UBER is potentially worth $2.31 to $11.63 per share, compared to its current $34.48 price."

Before the coronavirus I said I would buy Uber stock at $5 but now it would have to drop even lower to interest me.
 
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