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| London Transport (uk.transport.london) Discussion of all forms of transport in London. |
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#11
September 20th 16, 09:11 AM
posted to uk.transport.london
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Is Uber Bleeding to Death?
Robin9 wrote:
'Recliner[_3_ Wrote: ;158092']Robin9 wrote:- 'Recliner[_3_ Wrote: - ;158072']Robin9 wrote:- tim...;158053 Wrote: - came into my in box via my linkedin account https://www.linkedin.com/pulse/uber-...jared-carmel-2 posted without comment (for now) tim --- This email has been checked for viruses by Avast antivirus software. https://www.avast.com/antivirus- Interesting. What surprises me is that Uber is deemed to be losing money hand over fist. Not making enough profit to provide investers with a satisfactory return is one thing. Actually making a substantial loss is another. As Uber's drivers are paid only a percentage of what customers are charged, in London at least the business must show a profit before overheads are included. Are Uber's overheads far too high?- Uber's overheads are famously low. Why do you think Uber is making a profit in London? It doesn't even make a profit in the US. - If Uber can't make a profit before overheads are included, they must be grossly incompetent. Remember how the London minicab trade works. The driver is deemed to be self-employed, and pays for the car, insurance and petrol himself. The customer pays Uber by credit card and Uber pays a small percentage to the driver. As Uber seems to have taken a huge share of the market away from both Hackney cabs and minicabs, the number of jobs per day must be in the thousands. Multiply that number of jobs by an average net revenue of, say, five pounds and you arrive at a gross income which must be more than the cost of a minimal office set-up.- Uber is investing in market growth. That's where the big money goes. So it subsidies drivers to get into new markets, and spends a lot on marketing. I dare say it spends a lot on political lobbying as well. The really big losses were in China, but that's now stopped, so from now on, the losses should taper. But it's still fighting competitive battles in many markets, so bottom line profits will remain illusive. It also seems to be spending a lot on driverless technologies, as it expects these to be cheaper than drivers within a few years. But that means it will need to invest in the cars. I'm discussing the situation in London, and there is no indication that Uber are subsidising their drivers here. I am sceptical that they do anywhere, and I'm not persuaded merely because it is stated on the Internet. I'd like someone who believes that Uber are subsidising their drivers to explain in detail how this is done. Google is your friend: https://seattletransitblog.com/2016/...-of-subsidies/ http://www.financialexpress.com/indu...n-loss/358291/ https://www.bloomberg.com/view/artic...l-survive-uber http://www.hybridcars.com/uber-loses...ke-their-toll/ http://www.forbes.com/sites/ellenhue.../#6fcde8ad2bd6 http://www.ibtimes.co.uk/ubers-hands...f-2016-1578115 http://www.forbes.com/sites/ellenhue.../#354f4fe08c57 https://www.washingtonpost.com/news/...y-defeat-lyft/ http://economictimes.indiatimes.com/...w/47600297.cms |
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