We are definitely undervalued today. It may seem unrealistic, but we would end up becoming insanely profitable in the long run. Our main expenses are related to initial costs for scaling up: - litigation to compete with taxi services - advertising to get drivers on board - advertising to get new users on board - setting up infrastructure to expand into new territories - testing synergistic businesses Once we have resolved most of these problems, our expenses will nosedive. Then we can either enjoy the extra change or become even more competitive.
I’m bullish but idk about “definitely undervalued at 120B”
I can definitely empathize with the sentiment. It's in the category of - I know what I don't know. It's definitely hard to judge the specific valuation without hard numbers. I'll remove the number from the description because I'm only looking for the gut feeling here.
Don’t you think all these expenses are part of any business? Why do you think these expenses will nosedive? There will be lot of marketing/advertising expense to retain drivers & customers. Moreover the major market for Uber is in the US. In global markets it’s struggling to compete or stay competitive. Also Uber will have to spend lot of money on R&D to increase profit. I think the market is ripe for a 3rd player in ride sharing landscape. Who knows Amazon might get into this given it already has a working model in place for last mile delivery & logistics. Or it could be Google given how much money it’s spending on R&D.
Taking Amazons example, initial costs that have nosedived now: - sales tax litigation - warehouse establishment - worker comp - cost to get new merchants on board - cost to get new products on board - price cut - cost for performing AB tests with reliable signals - competition with brick and mortar stores
I think the assumption that drivers would be replaced by self-driving cars is the arrogance of Silicon Valley!
They won't be. It's also not an argument I'm making.
I remember Uber not doing so well in quite a few major markets; may it be because of regulations, good existing taxi service (some countries do have that), or simply better lobbying on the side of existing services. And how about the China debacle? Uber needs to figure out how to operate across the world... too many uncertainties to double or triple the IPO price imho.
I think Dara made a mistake running out of those markets. When the world starts loving Uber, the riders and drivers in those markets won't be able to use Uber even if they want to. We are too early in the fight to give up ground. It's going to be much harder to win it back from an incumbent. I can see why he did it though. He wants us to IPO at a good valuation so that we can use that money to compete hard and grow quickly. Hopefully that calculation bears out.
Well..it’s not like Uber is the only solution in town. Plus, autonomous cars can completely threaten your position right now.
Drink thy kool aid.
Uber could be profitable when autonomous self driving cars hit the road, but only if automakers dont create their own Uber like apps (which you know they will)
Uber could pivot to treat these other companies as "drivers" who can drive thousands of cars. Since we can provide these companies with profits almost as fast as they can get cars on the road, it would be an immediately profitable proposition for them.
It will still be profitable to invest vertically..checkout all those companies coming up with their own hardware inference chips.
It is quite simple. Uber makes 10b in revenue. This is revenue and not earnings. The only way they can grow from here to make say 100b in revenue is through self driving cars. I don’t think they will win that battle.
2024 Presidential Election
Yesterday
2542
Biden ruined America and tech! Tax plans are insane
2024 Presidential Election
Yesterday
1045
Who are you voting for in the 2024 Presidential Election?
Tech Industry
Yesterday
2121
So hard being a women in tech industry
India
Yesterday
1666
Please vote sensibly 🙏
Tech Industry
2d
54577
Goog Employees Arrested
Yes. This Taxi company is worth 1 Trillion
Like that PC company? Or that retail store?
Apple makes lot of money on PC's - seriously?