Does using Uber actually hurt them?

Salesforce 5if73n
Aug 14 15 Comments

So we all know that Uber is propping up their ride-sharing at cost to the investors. That they're currently losing more than they're gaining.

So, when I take an Uber, is that being subsidized by them, this costing them extra in losses?

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TOP 15 Comments
  • Amazon hydfb
    No, when you take a ride, you're paying the driver's salary, and Uber takes a cut of that salary. Uber doesn't even own the cars or pay for the gas, so they're losing nothing in the transaction. Now their other costs may be high, but just you booking and paying for a ride is definitely a net profit for them
    Aug 14 7
    • Uber / Eng fudhbe47
      He’s partially right. There are many fixed costs which will not reduce for less rides. We eventually rely on the network effect to make profit.
      Aug 14
    • Spotify / Product WXUp28
      Like Herbalife?
      Aug 14
    • BYTON cJKu57
      MLMs all the way baby
      Aug 15
    • New / Strategy
      Porsche996

      New Strategy

      BIO
      BS MechE, MS ISyE
      Porsche996more
      You forgot to add the costs for INSERT query that runs to update the DB.
      Aug 15
    • Amazon hydfb
      Lyft, why is it a stupid answer? You don't understand how your own company makes money?

      Most of Uber's costs are because they're pursuing growth over early profits. They could easily significantly cut down on many of their current costs and earn a decent profit but that's not an optimal strategy for the long term.
      Aug 15
  • Google TC lover
    When you take an Uber ride, that ride alone makes them money.

    The reason they are losing money is because they spend more money than they make on rides when paying their engineers and other positions.
    Aug 15 5
    • Uber / Eng
      ABT5

      Uber Eng

      PRE
      Uber
      ABT5more
      So that’s where the 5B last quarter went. With 20k employees that means each employee earns on average 1 million dollars a year, excluding stock awards.
      Aug 15
    • UnitedHealthcare / Eng C0D3M0NK
      They have CXO$ and infrastructure costs too
      Aug 15
    • Microsoft bloodbath
      Basically Uber was hiring crazy , with lot of duplicate work , honestly Uber engineering can be 1/8th and still function well and actually get profit.
      Aug 15
    • Uber / Eng oherrooo
      @ABT5 you think how we spend our money is some big mystery? Read the fucking Q2 financial statements. Take some initiative and learn about your company instead of spouting this crap on Blind. Jesus.
      Aug 15
    • He was being sarcastic you moron
      Aug 15
  • Microsoft bloodbath
    So Uber can now suggest you take Lyft and drive it down
    Aug 15 0

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