Uber you are more delusional than me if you think you are the next Amazon

Tank_Driver

Well-Known Member
Uber is pitching itself to investors as the next Amazon, despite no path to profits
  • Uber will reportedly compare itself to Amazon during its pre-IPO roadshow to justify its losses as it expands its business.
  • Amazon similarly went public before turning a profit and has since skyrocketed in value.
  • But Amazon's profitability is due mostly to its cloud business, Amazon Web Services.
Dara Khosrowshahi, chief executive officer of Uber Technologies.


Leading up to its public market debut, Uber hopes investors will align the stock with Amazon's rather than its close rival, Lyft. Uber plans to compare itself to Amazon during its pre-IPO roadshow in order to justify the billions of dollars it continues to lose, The New York Times reported.

It's no wonder why Uber would choose Amazon as its model, judging by the stock's performance. Amazon's stock price has multiplied from $18 per share at its debut in 1997 to nearly $2,000. Lyft's, by contrast, has tumbled from its debut price of $72 this March to just over $57. Uber did not immediately respond to a request for comment on its roadshow pitch.

Amazon's success in the public market despite losing money for much of its existence is a favorite comparison for other companies debuting without profits. But Amazon is the exception, not the rule.

Amazon's IPO serves as a handy reference point for Uber, which reported an adjusted EBITDA loss of $1.85 billion in 2018 along with slowing revenue growth. It also reported about a $1 billion loss for the first quarter of 2019 in its updated S-1 filing last week. Amazon also debuted without yet turning a profit, saying it planned to invest in building its business into new areas, as Uber has also said.
Like Amazon, Uber has prided itself on diversifying beyond the core service for which it is known. While Lyft has narrowed in its focus on ride sharing and personal mobility, like electric scooters, Uber has expanded into food delivery, freight and even flying cars.

But for Amazon, profitability has been driven largely by Amazon Web Services, which represented 13% of total sales at Amazon and 50% of its overall operating income in its first quarter of 2019. It's not yet clear whether Uber has the same kind of breakout business that can lead to profits. Uber's other bets are unlikely to add as much value as AWS has to Amazon, Wireless Fund lead portfolio manager Paul Meeks previously told CNBC.
"They'll try to leverage their platform into other things, but the other things will be transport because that's their gig and the transport business has a lot of established players," Meeks said.

After Uber priced its shares between $44 and $50, its valuation fell from an expected $100 billion to a range of $80.53 billion to $91.51 billion on a fully diluted basis. But even at the lower valuation, Uber's Amazon comparison stokes the "fear of missing out."

"That's a huge fear," Wedbush Securities analyst Dan Ives previously told CNBC. "That was a seminal event in terms of investing in tech stocks in the last 20 years."
 
Not only no path to profit but no assets. Amazon actually owns it's own stuff, well at least as much as they can. They do contract some when they have to, but they try to own everything they can. That because they want to be the worlds biggest and most powerful corporation. Uber is a scam and just wants to profit off the IPO and then sell their firm 10 years from now to a research or car company. Uber dominating anything is a pipe dream now and Uber knows it, they just want to steal as much money as they can before the plane takes a nose dive.
 

uberer2016

Well-Known Member
Core business of rideshare is still losing tons of money with no clear plan to turn a profit from it. Their huge market share simply stems from the fact that they're almost giving away free rides to people. Of course, people are gonna take advantage of it. Just wait and see what happens when they attempt to make any profit by raising prices.

Ubereats also encounters stiff competition from the likes of Doordash, GrubHub and Postmates. It's not making any money, either.

Uber compares itself to Amazon but it doesn't have the brains behind the company that is Jeff Bezos. Anyone betting on Uber becoming like Amazon would be like betting on Dara to be as smart as Bezos.
 

somedriverguy

Well-Known Member

Fisfis

Well-Known Member
Core business of rideshare is still losing tons of money with no clear plan to turn a profit from it. Their huge market share simply stems from the fact that they're almost giving away free rides to people. Of course, people are gonna take advantage of it. Just wait and see what happens when they attempt to make any profit by raising prices.

Ubereats also encounters stiff competition from the likes of Doordash, GrubHub and Postmates. It's not making any money, either.

Uber compares itself to Amazon but it doesn't have the brains behind the company that is Jeff Bezos. Anyone betting on Uber becoming like Amazon would be like betting on Dara to be as smart as Bezos.
You’re wrong on Ubereats. They’re generating one billion dollars a year revenue and way past Postmates and Doordash, coming second after Grubhub. I guess if they can increase the revenue stream for other platforms they can just suck it up for uber rides to stay in the game.
 

Carbuncle

Well-Known Member
You’re wrong on Ubereats. They’re generating one billion dollars a year revenue and way past Postmates and Doordash, coming second after Grubhub. I guess if they can increase the revenue stream for other platforms they can just suck it up for uber rides to stay in the game.

Restaurants are souring on delivery apps. They lose money on every order. McDonald’s is also seeking to end its exclusivity with UberEATS. Some governments are investigating UberEATS’s practices as more and more restaurants are complaining about hostile treatment by these companies. Also, many users try to scam free meals by saying their food never showed up and many drivers, once they realize how bad the pay and treatment is, start eating the food before quitting.

Uber is going down.
 

DollarFree

Well-Known Member
Core business of rideshare is still losing tons of money with no clear plan to turn a profit from it. Their huge market share simply stems from the fact that they're almost giving away free rides to people. Of course, people are gonna take advantage of it. Just wait and see what happens when they attempt to make any profit by raising prices.

Ubereats also encounters stiff competition from the likes of Doordash, GrubHub and Postmates. It's not making any money, either.

Uber compares itself to Amazon but it doesn't have the brains behind the company that is Jeff Bezos. Anyone betting on Uber becoming like Amazon would be like betting on Dara to be as smart as Bezos.
It’s kinda amazing that U/L can’t turn a profit even when they don’t have to provide the cars, (or buy medallions), they only pay the drivers anything at all when they’re on an actual paying trip, not for cruising around or even driving to a pickup. All they have to pay for is an app, the cloud systems behind it and insurance. And they still can’t make money. They really are some desperate dumbasses.
 

DollarFree

Well-Known Member
I never heard of that. You have a source you could share?
SDG no fool, knows the Romans didn’t build in kitchens at start of empire or during its hayday so he’s figured they didn’t suddenly start buying boatloads of Formica boards just as the Barbarians flooded over the mountains.
 
SDG no fool, knows the Romans didn’t build in kitchens at start of empire or during its hayday so he’s figured they didn’t suddenly start buying boatloads of Formica boards just as the Barbarians flooded over the mountains.
Are you high again? Or off the meds this time?
 
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