Uber Is Headed for a Crash?

Hubert Horan. Always an informative read.

http://nymag.com/intelligencer/2018/12/will-uber-survive-the-next-decade.html

"Uber has never presented a case as to why it will ever be profitable, let alone earn an adequate return on capital. Investors are pinning their hopes on a successful IPO, which means finding greater fools in sufficient numbers"

 

Let's see how off topic this thread will get.

Ready

Set

Go........

 

...have you read it???...I did...suppose that IPO will be an answer to it...

 

um yeah... for those who love headlines this is a winner

to anyone who understands the so called big picture..... this is landfill........

 

In what way?

 

facebook never presented a case of profitability.
nor did snapchat,nor did instagram
etc etc etc
profit was never 'touted' as their core business !

obviously it was always part of the business plan, but it was never once pitched .... not until they listed or more importantly (in this arena) were valued.


The simpler way of explaining this is - an investor in uber will absolutely be brought in on the "return to investment figures"
these are not usually made public and they are never once touted in public as 'profits'

Keep in mind, uber is still reporting losses on its balance sheet - all the while re-investing, accruing new businesses and making massive future based capital investments

knowone is burning this amount of cash if they believed for second there is no positive return.... ie profit

 

...an optimist ,aren't you...


...but please read what was written in the article...

 

Can cite plenty of examples of gamblers throwing out good money chasing bad?
Uber have pivoted about 5 times.

Let's look at what they've diversified into.
Driverless cars? Waymo / Google now admit decades away if ever.
Flying taxis?.A few drawings powered by batteries that don't even exist.
Bikes? No one else is making money there.

What is the big picture no one else can see?

 

im not a over the top fan of uber the business.

i like the principle of ride sharing
i like the workings of the uber service
(door pick up / tracking driver etc )
i like the fact there is another competitor in the market other than taxis


i did read the article
its absolutely nothing new in regards to this opinion

i dont agree with it because i see things in this space very differently

 

Market needs to be in a uptrend ... they will scrap it if market is not moving much.

 

I'm really busy this afternoon I won't bite

 

Uber is in for a rude awakening, the stock market is going to crash before they go IPO, and then Uber will blame the drivers.

 

...same as you I like driving with uber,but I am old,over sixty,so it is more like a fun to do it for me,but everything indicates,logic,common sense,whatever...that what this guy wrote might be correct ...well...IPO will be a proof if he was right or wrong...

 

Who got into a crash ?




Jk

 

I've mentioned it before that they should of IPOed some time ago, now they are heading into perfect storm

 

Data collection is the new silk, spices or gold now

 

...as so any other bull**** till one need a bread and water...

 

Uber JUST sold $2 billion in bonds. That's $2,000,000,000 at .... drumroll please .... EIGHT PERCENT.
It was pointed out elsewhere you you can get subprime auto loans for less.

EIGHT PERCENT

https://www.wsj.com/articles/uber-borrows-2-billion-in-debut-bond-sale-1539872466

"The new bonds received a private credit rating of single-B-minus from S&P Global Ratings and B3 from Moody’s Investors Service Inc., which were only made available to investors who signed confidentiality agreements, the analyst said. High-yield bond investors compared Uber’s deal to bonds recently issued by WeWork Cos. and Tesla Inc.,two other cash-burning companies with start-up profiles and lofty equity valuations."

Cash out at the end of every shift. Why? Because in a bankruptcy case; vendors and contractors get paid last. That means, you won't get paid. Don't get into them for more than you can afford to lose.

 

Their revenue for the 3rd quarter is $2.95B so they must be doing something right...But with a declared loss of $1B?!? That means only 2 things:
1. Either they're really bad at accounting for overhead expenses OR
2. They are investing heavily in other things like assets, etc.

I find it hard to believe that the losses are all associated with overheads. I mean, apart from servers, their HQ, some staff and one(or two) green light hubs per city... What else is there?

 

...haven't you noticed electronic billboards around Sydney with uber advertising??,multiply it with cities around the world,all settlements out of court ie paying to a family of the woman killed by uber autonomous car,paying of blackmailers,programmers,T.K six Billion,uber expenses are humongous...and don't forget that taxi business was not making much money before uber came...uber was like a gangster undercutting legit business 'cos they did not have overheads like taxis had...uber stopped to be gangster like and there is a prize to pay for it...now uber has to comply to the rules...and that is expensive ...please read article which started this thread...the logic can not be denied...