is uber past its peak?

Facebook uf8w95
Aug 8 33 Comments

weak growth, weak earnings, hiring freeze and layoffs. is uber last its peak?

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TOP 33 Comments
  • Amazon l7sy2w
    Like Amazon started e-commerce, Uber started ride sharing. Uber along with Uber Eats are not going anywhere. Do you ever say "Let's take a Lyft" instead of "Let's Uber to that place". Establishing your company name as a commonly used verb amid competition is itself an achievement.
    Aug 8 5
    • Google fdg
      Well there was a time when even Yahoo was a verb before Google came along.
      Aug 8
    • Facebook Tremor
      The services aren’t differentiated and in many cases it’s the same driver on both platforms. I’ll go with whatever is cheaper/closer. This means price wars are inevitable
      Aug 8
    • Amazon / Eng toys
      I do
      Aug 8
    • Lyft frxd02
      Actually, Lyft started the ride sharing.
      Aug 9
    • Bloomberg cg_ny
      Although Lyft makes so much more sense as a word than Über.
      Aug 9
  • Orion / Cust. Srv. 🌹♟🗡
    Comparing Uber to amazon is ridiculous, amazon lost money to grow but could have turned on profitability any time. Uber is fundamentally unprofitable.
    Aug 8 4
    • Google / Eng revert_bak
      Either rides have to get more expensive or drivers take an even bigger paycut.
      Aug 8
    • Microsoft rbf
      And I'm not using Uber if they increase the prices.
      Aug 9
    • Google / Eng revert_bak
      It's still profitable to not own a car.
      Aug 9
    • Orion / Cust. Srv. 🌹♟🗡
      Yeah exactly I use lyft a lot because it’s cheap, if it gets too expensive I’ll stop.
      Aug 9
  • New zkcU27
    Uber is unprofitable because there is another competitor in it's primary market that is taking market share and racing it to the bottom in terms of prices. The thing is if that competitor is in a weaker position in terms of cash and monetizing users, Uber will ultimately win out and be able to raise prices to become profitable. Lyft is a fundamentally weaker business than Uber. Just look at their recent earnings report:
    - In Q2 2018, Lyft had losses from operations of $193 million on 15 million active riders. That translates to losses of ~$13 per user. Uber had losses from operations of $739 million on 76 million average monthly active users translating to losses of ~$10 per user. In fact, the Uber calculation is more conservative in terms of counting riders because it's an average of monthly active users whereas the Lyft number counts you as a rider if you ride anytime during the quarter. I'm using last year's quarter because this year's quarter was kind of messed up with Uber IPO losses realizing.
    - Uber has way more cash on hand. In fact it's cash on hand grew in the last 6 months while Lyft's decreased in the last 6 months.

    Both of these indicate that Uber's business is fundamentally stronger than Lyft and can sustain a price war longer and more efficiently because they have more money and are losing less per user (despite all the hoopla around Lyft "beating expectations" which is just b.s. because the company can set terribly low expectations which they do because Lyft gives quarterly outlook while Uber does not). I'm super biased ofc because I used to work at Uber and own Uber shares, but hey everyone can look at their public results and judge for themselves.
    Aug 8 5
    • LinkedIn yFSV61
      It is short sided thinking if you think Uber's only competitor is Lyft. Every small, big taxi company is also Uber's competitor. The moment it tries to flex its muscle in pricing, there will be a set of people who will choose to take the local taxis. I for one for sure.

      Next, Uber's another set of competitors are the railroad agencies, like, Caltrain and Bart who have ambitious plan to significantly improve the service and its reach.

      Next headwind is the changing ideologies towards remote work. Lots of companies are following a decentralized model where teams work remotely. Uber will lose lots of revenue as this headwind picks up steam.

      Next, carpool apps like Scoop, waze getting better and gaining more traction.
      Aug 8
    • Google LyLs67
      Lol at the silliness of this argument. Users in India and South America are way cheaper to acquire and keep in the platform.
      Aug 9
    • LinkedIn yFSV61
      Lol, seriously? I am an Indian and trust me we are possibly the most price sensitive people in the world. Increase the prices, and we flock to other apps like Ola or local taxis.
      Aug 9
    • Google LyLs67
      @linkedin is wasnt replying to you but the original commenter.
      Aug 9
    • New SRDX18
      i don't get how your statement refutes the underlying argument of the OP. If you have less cash on hand and losing more money per user, you're going to go out of business earlier. Long-term, uber will have to compete with other modes of transportation if it wants primacy but right now, it's short-term profitability is hampered by an aggressive (but far weaker) price competitor.
      Aug 12
  • Google fdg
    Uber needs to find it's AWS fast.
    Aug 8 1
    • New / Strategy
      Porsche996

      New Strategy

      BIO
      BS MechE, MS ISyE
      Porsche996more
      That's ship has sailed.
      Uber launches grocery delivery.
      Aug 8
  • Microsoft / Product Djokovic
    Really hoping the stock crashs before blackout window is done so that the years of arrogant Uber TC whores will meet their maker.
    Aug 9 5
    • Uber / Eng
      TC || 👉

      Uber Eng

      PRE
      Google
      TC || 👉more
      😭 ... We'll still make the bank 😂😂
      Aug 9
    • Microsoft / Product 特朗普
      43 -> 37. I'm liking the trend 🥳
      Aug 12
    • Amazon / IT Truthtable
      Still remember arrogant uber recruiter who mocked fb and mentioned 150 billion valuation in a year. That was 2017..sure you can play money money before ipo
      Aug 14
    • Microsoft / Product 特Lang普
      33??? hows the bank??
      Aug 27
    • Uber / Eng
      TC || 👉

      Uber Eng

      PRE
      Google
      TC || 👉more
      Better than 🌲fiddy, as of now. Not sure if that'll continue by the time lock up ends 😅.
      Aug 27
  • Only self driving cars can save Uber.

    Have not looked at the details , but why is Uber losing so much money ? What’s eating it up ? Anybody analyzed this ? Is the reason too much TC ?
    Aug 9 5
    • Orion / Cust. Srv. 🌹♟🗡
      Even self driving cars can’t. Who’s going to give them the 10s or billions of dollars to deploy a massive fleet of bleeding edge technology?
      Aug 9
    • There’s SoftBank for all that shit. If they can pay Wework surely they can pay Uber
      Aug 9
    • Orion / Cust. Srv. 🌹♟🗡
      But why throw good money after bad? A self driving infrastructure is a massive investment and it will only produce the super profits necessary if Uber has a monopoly on the tech which is highly unlikely. If everyone can operate self driving vehicles what advantage will Uber have over others in the space?
      Aug 9
    • Facebook / Eng Zuckurberg
      Why would self driving cars, require any kind of logistics Uber has? Doesn't self driving cars make Uber useless?
      Aug 9
    • Orion / Cust. Srv. 🌹♟🗡
      Lol good point
      Aug 9
  • Just wait till November to expire lock out period. When employees sell, the stock will have to go to bottom 20s range
    Aug 9 0
  • LinkedIn yFSV61
    I almost always find Lyft cheaper than Uber since past 4-5 months now. Uber will end up competing with Amazon with its Uber Freight. Uber Eats seems interesting, but I don't know how big that market is. Revenue growth is low compared to the huge expectations world has from this company and what Uber expects from itself.
    Aug 8 0

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