The Naked Capitalism analysis was a joke, and there literally is no evidence supporting their conclusions.
Imagine Uber issues a financial report saying they lose $3B in a year on $2B in revenues (total spending $5B). We also know they opened over 100 new markets that year, and in new markets spend an average of over $100 each to recruit new drivers.
So what’s the truth? That passengers are only paying 40% if Uber’s ride costs? Or that Uber front loaded billions in new market development costs internationally, while more mature markets like the US are already close to profitability?
Naked Capitalism would have you believe the first scenario, without enough detail in Uber financial reports to give any idea which scenario is true.
Some of us despise Uber so much, that unfounded speculation by NC tells them what they want to hear, so they turn off all critical thinking about it.
Not only does this article ignore rapidly improving Uber financials since the NC takedown, but that booking a ride costs Uber pennies. Their share of the ride revenues is dollars. How is that not going to be super profitable once new market development costs ramp down?
Imagine Uber issues a financial report saying they lose $3B in a year on $2B in revenues (total spending $5B). We also know they opened over 100 new markets that year, and in new markets spend an average of over $100 each to recruit new drivers.
So what’s the truth? That passengers are only paying 40% if Uber’s ride costs? Or that Uber front loaded billions in new market development costs internationally, while more mature markets like the US are already close to profitability?
Naked Capitalism would have you believe the first scenario, without enough detail in Uber financial reports to give any idea which scenario is true.
Some of us despise Uber so much, that unfounded speculation by NC tells them what they want to hear, so they turn off all critical thinking about it.
Not only does this article ignore rapidly improving Uber financials since the NC takedown, but that booking a ride costs Uber pennies. Their share of the ride revenues is dollars. How is that not going to be super profitable once new market development costs ramp down?