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Will Uber go out of business?

The IPO raised $9 billion for Uber.

Uber burned through $5 billion of that dough in one year following the IPO.

In order to raise more cash to sustain operations, Uber will have to sell more stock.

But, thing is, the stock's value is going down. And, as this cycle continues, the point of diminishing returns happens, where
the value of the stock is so low that selling stock doesn't bring in enough cash to sustain operations.

Heck, I'm hearing that in some regions, Uber and Lyft are not paying on cash outs, but I've not experienced that in my city.

So, Uber, in order to be profitable, will have to do one or more of the following

1. Get rid of the unprofitable markets ( I think the only profitable market is the US, no? )

2. Cut driver pay ( not an option, pay is too low already, drivers will just quit if it gets too low )

3. Raise retail prices.

4. Declare bankruptcy

IF I were the CEO, I would go with #3. The reason why is that Lyft is losing money, too, and whatever Uber does, Lyft will follow, they need cash, and if UBer raises it's rates, Lyft will do the same.
 

Comments

25rides7daysaweek

Well-Known Member
The IPO raised $9 billion for Uber.

Uber burned through $5 billion of that dough in one year following the IPO.

In order to raise more cash to sustain operations, Uber will have to sell more stock.

But, thing is, the stock's value is going down. And, as this cycle continues, the point of diminishing returns happens, where
the value of the stock is so low that selling stock doesn't bring in enough cash to sustain operations.

Heck, I'm hearing that in some regions, Uber and Lyft are not paying on cash outs, but I've not experienced that in my city.

So, Uber, in order to be profitable, will have to do one or more of the following

1. Get rid of the unprofitable markets ( I think the only profitable market is the US, no? )

2. Cut driver pay ( not an option, pay is too low already, drivers will just quit if it gets too low )

3. Raise retail prices.

4. Declare bankruptcy

IF I were the CEO, I would go with #3. The reason why is that Lyft is losing money, too, and whatever Uber does, Lyft will follow, they need cash, and if UBer raises it's rates, Lyft will do the same.
And if Lyft gets away w dropping the rates to .30 a mile uber will follow...
 

Clothahump

Well-Known Member
Fire at least half of the staff in San Francisco. That includes Dara. Get some management in there that actually knows how to run a business. Also, move out of California to a cheaper business environment, like Texas.

Quit burning money on driverless cars and other pipe dreams.

Raise the fares and throw a little bit of that to the drivers.

It ain't rocket science, folks.
 

tohunt4me

Well-Known Member
The IPO raised $9 billion for Uber.

Uber burned through $5 billion of that dough in one year following the IPO.

In order to raise more cash to sustain operations, Uber will have to sell more stock.

But, thing is, the stock's value is going down. And, as this cycle continues, the point of diminishing returns happens, where
the value of the stock is so low that selling stock doesn't bring in enough cash to sustain operations.

Heck, I'm hearing that in some regions, Uber and Lyft are not paying on cash outs, but I've not experienced that in my city.

So, Uber, in order to be profitable, will have to do one or more of the following

1. Get rid of the unprofitable markets ( I think the only profitable market is the US, no? )

2. Cut driver pay ( not an option, pay is too low already, drivers will just quit if it gets too low )

3. Raise retail prices.

4. Declare bankruptcy

IF I were the CEO, I would go with #3. The reason why is that Lyft is losing money, too, and whatever Uber does, Lyft will follow, they need cash, and if UBer raises it's rates, Lyft will do the same.
IS THAT WHY INSTANT PAY ISNT WORKING ?

THEY BROKE ALREADY !?!?

" LOWER RATES MEAN MORE MONEY " !

" NO NEED TO TIP" !
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And if Lyft gets away w dropping the rates to .30 a mile uber will follow...
LYFT IS DEAD.

SUICIDE BY RATE CUT.
 

doyousensehumor

Well-Known Member
I am assuming someday the bills will come due and Uber will have to turn a profit to survive... We'll see if they do that or what happens
 

Lyftuber100

Active Member
Stop burning BILLIONS on AI tech, Fuber will start making profits immediately
This. I dont think they actually understand that ai tech is not the future for cars. Someone sold them a bill of goods on that idea.

Do they honestly see cars without humans driving them happening within the next 20 years? We still gave air line accidents and they have an autopilot for christ sake.
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I am not to sure of this option. I was in the Las Vegas in 2019 when Lyft cut drivers pay. Per mile went from 62 cents to 44 cents per mile, and drivers still drove.
Heh, I'd just move to a different state with higher per mile and live at the airport until I collect enough money move back to my home state or just live in a car for a month in a high col place and see the money add up.
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10 years from now a New Generation of drivers will be announcing
“Uber’s Finished”
“Uber’s Dead”

Guess who’ll be laughing

Uber will never die. People will always need a ride to work at x because x hasn't been automated yet.

I mean think about it, most people we drop or pick up are usually workers at places that should have already been automated or online only but the technology isn't there or the techies are unwilling to do that do the pop.
Post automatically merged:

The IPO raised $9 billion for Uber.

Uber burned through $5 billion of that dough in one year following the IPO.

In order to raise more cash to sustain operations, Uber will have to sell more stock.

But, thing is, the stock's value is going down. And, as this cycle continues, the point of diminishing returns happens, where
the value of the stock is so low that selling stock doesn't bring in enough cash to sustain operations.

Heck, I'm hearing that in some regions, Uber and Lyft are not paying on cash outs, but I've not experienced that in my city.

So, Uber, in order to be profitable, will have to do one or more of the following

1. Get rid of the unprofitable markets ( I think the only profitable market is the US, no? )

2. Cut driver pay ( not an option, pay is too low already, drivers will just quit if it gets too low )

3. Raise retail prices.

4. Declare bankruptcy

IF I were the CEO, I would go with #3. The reason why is that Lyft is losing money, too, and whatever Uber does, Lyft will follow, they need cash, and if UBer raises it's rates, Lyft will do the same.
Not true, I've seen people on lyft drive for .44 in a state where uber is .65.

I was even at a lyft green light and I was hearing people complaining to the staff that they have to drive more hours and they dont get paid that 1000 a week that they used to make.

I couldnt tell them that they were in a messed up lyft lease because I dont need more lyft ants going to uber even though they are probably driving lyft for a reason lol.
 
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Austin383

Member
Yes, I honestly see autonomous vehicles within 20 yrs and yes people will still die in auto accidents, especially at first. If 10,000 people die in the first year you would think AI is the dumbest idea ever yet with 10,000 dying AI saved over twice as many who currently die in auto accidents. Are you really smarter than the people currently working on it to know they have no idea?
 

Eddie Dingle

Active Member
It's all a crazy joke. The rideshare bit was meant to just be a stepping stone to the self driving cars thing. But now they find they'll have to run the cab company they built for an extra 10 or 20 years. Meanwhile they've got rideshare companies to compete with who haven't staked their future on future technology or spent mega bucks building a brand. I'm talking about Ola and Didi.
 

SHalester

Well-Known Member

The statement to focus on is cash flow, not the income statement. 2018 Uber burned 1.5b; not the eye popping amounts others have posted.
 

Crosbyandstarsky

Active Member
The IPO raised $9 billion for Uber.

Uber burned through $5 billion of that dough in one year following the IPO.

In order to raise more cash to sustain operations, Uber will have to sell more stock.

But, thing is, the stock's value is going down. And, as this cycle continues, the point of diminishing returns happens, where
the value of the stock is so low that selling stock doesn't bring in enough cash to sustain operations.

Heck, I'm hearing that in some regions, Uber and Lyft are not paying on cash outs, but I've not experienced that in my city.

So, Uber, in order to be profitable, will have to do one or more of the following

1. Get rid of the unprofitable markets ( I think the only profitable market is the US, no? )

2. Cut driver pay ( not an option, pay is too low already, drivers will just quit if it gets too low )

3. Raise retail prices.

4. Declare bankruptcy

IF I were the CEO, I would go with #3. The reason why is that Lyft is losing money, too, and whatever Uber does, Lyft will follow, they need cash, and if UBer raises it's rates, Lyft will do the same.
Lyft will buy uber or vise versa. Someone will always buy them
 

Daisey77

Well-Known Member
This. I dont think they actually understand that ai tech is not the future for cars. Someone sold them a bill of goods on that idea.

Do they honestly see cars without humans driving them happening within the next 20 years? We still gave air line accidents and they have an autopilot for christ sake
I guarantee that's what they sold investors on. From the beginning the whole Focus was on autonomous cars, using us in lieu of until autonomous cars came out. That didn't quite go as smooth as they thought and now, here we are. There was absolutely no plan B in place. Their arrogance would not allow it. All the pissed-off driver they were planning on dipping out on and laughing their way into the autonomous cars. Now they're stuck with us pissed off drivers LOL pissed off drivers, pissed off investors and pissed off passengers can still no plan B or C
Uber will never die. People will always need a ride tGetork at x because x
People may always NEED but they might not always GET
 

Another Uber Driver

Well-Known Member
Moderator
Uber and Lyft could collapse Monday.

By Wednesday, there will be eight new TNCs that are signing up drivers.

By Friday, two of them will be putting out pings.

One of the failings is that they are not charging the customers enough money. If they ever do, the drivers will see little, if any, of the increase. Lyft did announce simultaneous pay cuts and fare increases in about eight markets. We have not herd much from Lyft on how it is going. It must not be going that well, as the simultaneous rate increases/pay cuts have not spread, at least not Y-E-T.
 

GreatOrchid

Well-Known Member
wait maybe don trump will buy uber to keep all the drivers employed and his big income tax scam will keep it floating
 
I rarely drive lyft now because their rates are stupid low. It’s two hours easy from where I normally drive to get to jfk. Privately one would be paid about $250. Uber is about $160 and Lyft was on a scheduled ride $70 to $100 at freaking rush hour. I do not drive to Manhattan or to JFK or LaGuardia ever on either platform. It’s a constant battle to get them to pay the gosh darn tolls. Not to mention I have to deadhead out of New York and city because of NYC’s new TLC rules whic are only there to make taxi drivers get the better end of the deal, Having said all that it just isn’t worth my time to haul my car through potholes roads across Brooklyn. Money wise it isn’t worth it.
 

Another Uber Driver

Well-Known Member
Moderator
It’s two hours easy from where I normally drive to get to jfk. I do not drive to Manhattan or to JFK or LaGuardia ever on either platform. It’s a constant battle to get them to pay the gosh darn tolls. Not to mention I have to deadhead out of New York and city
The only way that I would go anywhere in New York City is if the trip started there, I do not run long trips in the Uber/Lyft car, either. I only have had one trip where I had to tell the customer that I would not do it. I did offer to drive him to my home, transfer him and his suitcases to my cab and he could pay cab rates to go there. He was not going to pay cab rates. I was not going to make the trip for Uber's rates.
 
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