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Uber's losses continue to grow

Uber's losses continue to grow

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  • Articles and numbers like this reinforce my skepticism of Uber’s long-term prospects (and organizational culture and management issues only exacerbate those concerns).

    Some argue that Uber has irreversibly changed the landscape; others argue that financial success appears difficult to imagine. Both

    Articles and numbers like this reinforce my skepticism of Uber’s long-term prospects (and organizational culture and management issues only exacerbate those concerns).

    Some argue that Uber has irreversibly changed the landscape; others argue that financial success appears difficult to imagine. Both of these conclusions can be true. It may be that Uber and its competitors are catalysts or impetuses for change that don’t survive themselves (so, not literally catalysts, but we’ll leave that for the chemistry experts). As a reference point, Napster comes to mind. They world was different after the initial vision was realized, but Napster didn’t survive. Spotify (another company with challenging financials) may yet be another example.

  • Most of today’s tech firms, even when overvalued, are firmly profitable. But Uber’s numbers remind me of dotcom days. Burning $1B a year is a lot of money.

  • Uber eats runrate at $8B per year, growing 150% YoY. Wow.

  • $55B bookings run rate, profitable in its more mature markets, investing aggressively in markets like India and the Middle East. Beast!

  • At this point it’s hard to imagine Uber ever being profitable. But it’s also hard to imagine the world without Uber.

  • If you strip out Uber Eats, the core biz is slowing much faster than one would think. Nonetheless, I still see them doing a bit under $50B in gross bookings this year, which is phenomenal for a biz founded nine years ago. They are making smart investments - bike/scooter sharing, freight, expansion into

    If you strip out Uber Eats, the core biz is slowing much faster than one would think. Nonetheless, I still see them doing a bit under $50B in gross bookings this year, which is phenomenal for a biz founded nine years ago. They are making smart investments - bike/scooter sharing, freight, expansion into the Middle East and India, as well as investments in autonomous driving. The latter should explode their addressable market by reducing the partner earnings and passing the savings to customers via a reduction in the per mile fee. It should also help them drive toward profitability sooner.

  • These metrics make me slightly more comfortable with the $120B IPO valuation being thrown around. At $12B rev run-rate (based on Q3) and ~50% growth, that’s 10x LTM and probably 6x forward. Still rich, but my jaw’s not on the ground.

  • In the long run I think Uber will be ok and the company will successfully IPO and remain a dominant player in the market. Their rewards programs and incentive plans will further solidify their plans for an IPO and growth is continuing. Although their losses are widening in some markets, they have narrowed

    In the long run I think Uber will be ok and the company will successfully IPO and remain a dominant player in the market. Their rewards programs and incentive plans will further solidify their plans for an IPO and growth is continuing. Although their losses are widening in some markets, they have narrowed in others. Props to Uber’s new leadership for getting the company back on track.

  • Rapid growth can only be achieved at the expense of short-term profitability. It’s easy to say, however, so few organizations have either the mindset or the deep pockets to achieve this.

    Uber has a $1.07 billion in net losses in Q3 as it is paving the road in more competitive markets. Take that as

    Rapid growth can only be achieved at the expense of short-term profitability. It’s easy to say, however, so few organizations have either the mindset or the deep pockets to achieve this.

    Uber has a $1.07 billion in net losses in Q3 as it is paving the road in more competitive markets. Take that as an example of the actual pains of success.

    Let’s see if after going public, investors are as patient and/or understanding of Uber’s strategy.

  • what are adjusted EBITDA losses

  • And that’s why a loyalty program is on the cards.