Uber's valuation is now starting to makes sense if this is true. Marginal cost of revenue for uber is very very low. You can argue that gross margins can run as high as 60-70% of revenue. Giving uber gross profit of over 3B for 2016. Given how aggressive uber is in driving growth premium on valuation is making sense.
Side note: I was in Chicago last week - and I am noticing almost every cab driver now has uber app open. There are 13k uber drivers in chicago alone. Anecdotal evidence suggests Uber is winning.
Side note: I was in Chicago last week - and I am noticing almost every cab driver now has uber app open. There are 13k uber drivers in chicago alone. Anecdotal evidence suggests Uber is winning.