Amazon used to lose money on every order.
It’s hard to tell with Uber. Tesla is also bleeding lots of cash, but many would argue that their business model is sustainable in the long-run, so investors aren’t very worried about short-term losses.
Is Uber in the same boat? I’m not sure, but I agree with many people here that they need a new leader who is skilled at both preventing and putting out fires.
Seems to me Uber’s business model of utilizing independent contractors is also being used at Lyft, Gett, Juno, and the newer Via car service. So not sure why Uber is being singled out for pulling some kind of bait and switch on it’s drivers. Once you get beyond all the promotions and new rider incentives, pricing is not all that different. Some offer better ride sharing options which I have to imagine are a major PITA to the drivers with all those stops.
Personally I will continue to use Uber even if their prices go up until such time as another service can match their reliability and convenience level. My experience is primarily in Manhattan, although if I am traveling in another city for a short stay, I do not even bother renting a car – I Uber. It’s less expensive in most cases and I don’t have to worry about navigating an unfamiliar city. My D uses UberPool all the time in Boston and it is her basic means of transportation.
In Manhattan, Uber is simply more convenient than a taxi – I don’t have to stand outside in all kinds of weather and compete for a car. The instant contact with the driver and tracking makes a difference to me, and I will pay for that service. Overall their cars are cleaner and the drivers more pleasant than what I have historically encountered in a yellow cab.
So personally I am hoping they straighten whatever issues they have out. For Amex Platinum holders I just received an email last evening advising they are adding the following benefit to the card:
So…he…made an “idea” into a “concept.” Hmmm. I’m not sure what that means, but I’m pretty sure one doesn’t have to be a completely reprehensible jerk to accomplish it.
Really?
http://www.bbc.com/news/technology-39065526
http://www.nbc26.com/news/national/uber-investors-blast-company-culture
http://edition.cnn.com/2017/03/01/opinions/real-story-behind-uber-sims-opinion/
Chris Sacca is a sophisticated investor though – he’s a venture capitalist and is well aware of the risks he is taking. He agreed to certain terms and he has to abide by them – if he wanted more control he should have negotiated that up front. Hard for me to feel bad for him.
In terms of investor reaction, the ones who really count are the ones who control the board of directors seats, since they have the power to hire or fire the executive employees. However, it looks like 4 of the 8 directors at Uber are insiders, according to http://www.bloomberg.com/research/stocks/private/board.asp?privcapId=144524848 .
Hilarious piece by the great Laurie Penny, at her scathing best:
https://www.theguardian.com/commentisfree/2017/mar/03/uber-spreading-social-poison-travis-kalanick
I particularly disliked Travis literally bouncing off the girls on either side of him in the video. Neither seemed particularly enthused about the contact but neither seemed to want to offend him. It all seemed initiated by HIM.
Well, @HImom , he is the guy who joked that he should have called Uber “Boob-er” because of all the action he got. Class act, Kalanick. Class act.
Amazon is focused on world domination through one stop shopping, viewing, and listening. They have a lock on 80%+ of what I buy, and probably 25% of what I watch.This stickiness is a great approach to building a profitable company.
Uber has no such stickiness, as customers can easily switch to Lyft, and readily do.
However, Uber has one potential ace up its sleeve if it can survive 5+ years, which is that it is a leader with self driving car technology. They have hired some of the best experts out of CMU, and are starting trials in select locations. They essentially have to pull a Netflix like switch, which went from being a DVD by mail company to a streaming entertainment service.
In other words, if Uber is relevant 10 years from now, it is because they will have no drivers.
Surprise, surprise, more bad press for Uber:
https://www.theatlantic.com/technology/archive/2017/03/uber-ghost-app/518610/?google_editors_picks=true
Marvin, did you mean “class action lawsuit”?
I am not anti-tech or anti-capitalism, but I personally despise the name… “über alles” anyone?
He was an Uber Black driver. They are commercially licensed, buy or lease specific luxury cars, some own more than one and hire drivers of their own. They make these business decisions based on Uber rates (guess they thought they would not be lowered), the fact that there was no such thing as Uber X when they bought in, etc.
Very different from you or I driving our personal cars a couple of hours a week for a few extra $.
Now, Uber also promotes special car leases. People read that they will make $x per week and the lease is $x per week but then they don’t make it, or Uber lowers rates or driver share, and they’re screwed, stuck with payments (much higher than a normal lease) and can’t pay for it with what they earn form Uber. https://www.uber.com/drive/vehicle-solutions/leasing/
Lyft is pretty much only in the “drive my own car for extra money” market though of course many drivers do both and some Lyft drivers do drive for a living, doing rideshare only.
I think the guy was exaggerating for effect.
Wow, that’s quite a few significant differences that seem to occur pretty often. Uber sounds like a very iffy place to work for.
doschicos that made my brain hurt , trying to follow that.