Tech Industry
Yesterday
661
Postpone Meta Start Date?
Tech Industry
Yesterday
2139
I’m Sooo Happy about Biden signing TikTok ban bill today!!
Tech Industry
Yesterday
2927
Avoid teams with only Chinese or Indians especially with a Chinese/Indian manager
Tech Industry
Yesterday
954
I haven’t done shit today!
Tech Industry
2d
39876
Worried that our top performer is an attrition risk. How do managers handle this?
Dara foolishly thinks losing money in the short term will return long term values. He wants to become a low operating margin, high volume business - like Amazon. Uber is not a low cost product because of OH leverage, but only bc they heavily subsidize their fares - like PanAm. Amazon has a cash cow bankrolling their low margin business, Uber does not. if Uber doesn’t put up a positive cash flow cow in the next 3 years, Uber will be forced to largely scale down their operations and make it profitable hence most of you in Sf will be laid off in favor for cheaper employees else where. Your RSUs will be worth 20-45% of the value today. Run, run fast, run far, you don’t want to be a part of this when it implodes.
Oh accidentally
Isn't Uber churn net negative? That means that each new customer is worth something over time and possibly infinite source of revenues and profits. Has that changed? Do you have any data to back it up?
Growing a negative cash flow customer base increases losses, and mix that in with cross selling even higher loss margin products. That’s cash burning fast homie.
Uber needs to start increasing costs as some point; whether they succeed for fail is almost entirely hinged on whether or not consumers are okay with the increase which I would estimate needs to near 50% if the govt continues down the path of forcing them to actually employ their drivers and provide benefits
On the other hand, UberEats has become one of the fastest growing delivery platforms in the world. They have a delivery network in every country (thanks to Uber cab). Granted UE is subsidized by Uber cab, which doesn’t make sense since Uber cab is a shitty margin business.
GrubHub which is 3 x larger than Uber eats is worth 7 billion dollars. So stop believing hype.
An aggregator vs delivery platform
Companies like DoorDash are now outselling Uber Eats though, so even that part of the business is now under threat.
Just because doordash is outselling ubereats doesn’t mean ubereats is not a great business. Doordash has been around waaay longer than ubereats. The fact that ubereats managed to grow so fast doordash had to play catch up is amazing.
UE is global though
The other thing that is going to really hurt Uber’s profitability moving forward is the cost of entry for competition is insanely low so the second Uber starts making serious money they are guaranteed to find themselves in a race to the bottom against new comers.
Yeah, Uber's core business has network effects but pretty low switching costs for both marketplace participant sides. There is no dopamine feedback reinforcement loop like in our favorite social media plays. And minimal economies of scale once you have sufficent marketplace density on both sides in a given geolocale. Maybe I am missing something but it looks like they are desperate to find a cash cow business to strap onto their scale.
Yep, it looks the same to me as well. I think their best bet is to somehow leverage their rather global network. Similar to how amazons biggest asset in the product space is there physical FCs and distribution network, if Uber could leverage their driver network on a basis that isn’t 1:1 consumer:driver I think you start to build something that isn’t easily replicated. I just have no idea what that service would be that hasn’t already been perfected by others through other means
Dont worry, Dara will leave just at the right time. See Expedia.
Don't you think ppl will go back to driving or public transport when Uber increases prices by 50 to 80 percent? Not to mention competition to uber
So you are saying Uber will make up for margin with volume. It doesn't work like that on the taxi business..
That’s exactly what happened to Chinese Uber Didi Chuxing, laid off 15 % of staff
Interesting post. Why tag salesforce?