"We lose money on every transaction, but dont worry! We'll make it up with volume."

Uber runs a few data centers and a customer service center overseas. The Uber drivers assume ALL the expenses of the vehicle, gasoline, insurance, repairs, etc. And Uber takes a big chunk of the money that customers pay for a ride. There is no way Uber Corporation is losing billions of dollars. Some seriously *creative* accounting is going on here .

As a product designer/manager, I hate it so much. I actively avoid companies that burn money constantly. They pay good salaries. But seems like, they burn the money to force the market in an unnatural direction. Everyone loses in the end, except CEOs 💀

It honestly one of the greatest wonders of our world... How can Uber, who takes around half the price of a fare be unprofitable? Is server upkeep that expensive? Where is Uber throwing away money they get for doing almost nothing? So, if Uber as a whole can't operate at a profit, where does that leave individual drivers? All uber does is provide a forum for drivers and passengers to communicate and make transactions. They do not pay for repairs, oil changes, or even fuel for the vehicles that literally drive their business. The fact that uber can fail to make a profit should be a critique of our system at large.

I think a big issue is how similar Uber and Lyft are. To me, there is practically no difference, so if I have to make a trip I'll just use the cheaper app.

The main problem is that anything electrical is called a Tech company, and is compared against a real tech company. Tesla is not a Tech company, it is a simple Car manufacturer. Uber is not a Tech company, Uber is in the Transport Buisiness. Just because you use an app for your service doesn't make you a tech company. My Bank has an app as well, but I would not call it a Tech company.

They wasted 2-3 billion on PostMates which was circulating the drain. Plowing their first profit into a stock buyback was annoying too. Ghost & virtual kitchens are absurd complications & dilution to the real brands.

Uber's greatest success was circumnavigating pre-existing worker regulations and proudly calling themselves industry disruptors. Let's us not forget LA and San Francisco, and NY were against it until the politicians were paid off.

How can you lose money when you take 70 percent of the profit?

I stopped using Uber when I realized that Lyft charges about half as much for the same rides. The wait times are shorter with Lyft as well.

Where are their expenses even coming from?!? Nothing uber does requires bay area engineers. They could go to literally any other state / city and pay less.

Charges rider 40$ driver gets 7$

Uber is not a tech company. They are a platform, that’s it.

Anyone who has some experience in the food industry knows that the profitability of Uber scales linearly with the number of riders, which means that it cannot scale like tech companies.

Does anyone else remember when Uber created a program so that government IPs/phones couldn't book a trip, making it seem like there were no drivers available to avoid charges? 🤣🤣

Ah, a great example of people not knowing what variable costs are and why it's important in business.

taxi medallions are a new york city thing not a us thing

I honestly don't understand why you're discussing these dubious schemes. There are plenty of options like Eledator and similar ones that are fast and profitable.

It's giant taxi cab hailing service. Not a lot of margin in that business. At least it stops pretending to be a high-tech company. (Remember it was pretending to work on FSD?)

Uber ride 22 $ Lyft ride for the same distance - 15$

44$ to go 8 highway miles is insane.

You should make a video about Upwork and how they have become more and more greedy over the years.

I know tehy invested heavily into infiltrating the german market, then the german regulator killed it by demanding each driver have a taxi license

Why are travel booking companies like Expedia doing well as they have a similar job function and they don't even take a cut of the fare expense?

Uber Eats was a bad idea? You mean paying people to chauffeur Big Macs around isn’t working out?

I genuinely don't understand how they aren't profitable profitable it makes no sense to me it's basically a restaurant business but like without any of the expensive overhead other than employees and marketing

Uber is probably a scam.

Cuban missed out on hundreds of millions in profit and you are making it seem like he is a genius.

If you talk to Uber drivers, they complain that the costs for engineers salaries is way too high, and watching this I can’t help but agree

Still, what Uber does as a service and the revolution it started is one of the most concrete value propositions in the B2C space. Can't imagine moving around cities without Uber today

Excellent video and Spot On!! Lyft was and still is the downfall for drivers earnings, Uber is just following suit into the sewer.

I wonder how until long companies that grow valuations by increasing market share while losing money become case studies in business schools? My guess is that it will be after the "great reset" or the civil war or the "New-New-Deal". I remember being laughed at when I advocated for my company, Dow Chemical, to get a service provide to pay for developing software so that they could grow their market share even though we wanted them to provide us the software for free. Now days, it seems like this is a common business strategy.

I enjoyed the discounted and free rides over the years subsidised by VC funding 😊

Uber, Netflix, Spotify, KZfaq, etc. What people don't understand is the long-term business model. 1. Re-invent cabs, movie rentals, music distribution 2. Do it at a loss, disrupt legacy (profitable, proven) business models, gain market share though low cost and convenience 3. Once legacy businesses are gone or market share reduced, you are in control, raise prices, mine and sell customer data, pay creators, drivers, artists less, introduce legacy business model tactics (eg: ads and tiered service models) Uber was not supposed to "make money" in steps 1 or 2. Only now with driver pay reduced, surge pricing, 6+ levels of Uber service and the legacy taxi companies mostly gone, now it's time. It was never prestigious to be a taxi driver... yet somehow being an Uber driver was, for a little while anyway. Well, it's not cool anymore. It's just another low paying, long hour job, just like being a taxi driver was. If you pay for Spotify, KZfaq, Netflix, etc.... don't complain, because YOU are enabling this.

I really need ride share because I'm to point where I don't really need to own a car. I put less than 200 miles a month on the car I currently have, but my insurance is $2100 dollars a year. I do use Uber occasionally because I don't really like driving. When I use Uber, I pay $25 or tip %30, which ever is more. I can usually get a ride within 5 to 10 minutes. I've never tried Lyft.

It warms my heart every time I hear about Uber problems! Talk about throwing Billions to solve a problem that didn't exist only to create new problems. I've never had an Uber ride, and if I decide TakeAway, I go out and take it away myself 🤣

Thank you for your research. I find your videos are well done. RIght now I'm keeping an eye on Eledator

I wanna know why loss leaders are so popular now. It's ominous that the most prudent businesses are now glass houses...

Held their stock for a while but was mad when they would tank and no real sign of profitability. Too many red flags sold at $60 so 1.5x my money but man it was wild stressful ride. Learned the hard way stick to good forever businesses

At one point in time Uber was spending huge amounts of money building their own data centers. Whereas other SAAS companies were using infrastructure providers like AWS. When they grew they had to pay increasingly large amounts of money to Amazon but they could scale it back as demand scaled deck. The thing about an app is when you expand you don't necessarily have to hire more software engineers if your app is architected in an efficient way You just scale horizontally of course adding features means utilizing engineers, maintenance means utilizing engineers etc but it doesn't mean that adding 10 million more users means you have to hire x scale amount of engineers to service them. If the app is developed to scale horizontally and is not a monolith you just apply more resources and deploy more instances. I can't conclude that Mark was smart and turning down an initial investment in Uber because he certainly would have made a great deal of money had he held on to it and sold it at the right time even if he didn't believe in it rising in value forever

Imagine an industry that was as regulated by state and federal law to the extent of the taxi industry. Now see that industry destroyed overnight by a competitor who had no such restrictions or responsibility. The lesson is a deeply disturbing one ; the rules you are forced to follow may offer you no protection in the end .

They created a market based on a race to the bottom but short of eliminating labor via completely autonomous vehicles, the model isn’t realistic. And even WHEN those vehicles arrive it’s going to cost billions to get a fleet going at the scale Uber operates now.

Finance always make the accountants make the company on a loss, so a loosing company can’t be taxed. The board of directors probably pay themselves big bonuses to make the company on a loss.

i'm obsessed with this channel 💗

This certainly sounds good too, but I think it's still worth considering more reliable options like copy trading platforms such as Eledator, for example.

Thank you very much for your videos and great analysis.

CONTENT IS HERE

Oh, I love you guys, the best market analysis! Seriously, why not mention Eledator?

The audio sync to the lip movement feels much more natural in this. Whatever you're doing is working.

I don't understand why no one points out the fact that Uber has been free cash flow positive for the last 5 quarter already. It's FCF is already 1.4B last quarter. Who says they are still a loss leader?

Aren’t the taxi medallions only a thing in NYC?

As an engineer and architect, the 4,500 microservices stat caused my eyeballs to fall out.

The problem is wasting money on research and development of products that haven’t shown results yet. They need to give up on self driving and other automated expensive delivery products and wait for another company to deal with that and buy the rights afterwards

Bro how do you have time to make so many analysis videos? Also, let me know if you need help with the analysis.

It can't ever profit, their model is severaly flawed. In Livery there were already razor thin margins for taxi and shuttle companies. In fact I worked for a huge company where the shuttle didnt make any profit and was there to please the customers. Most of the money the companies made was based on the rental of the taxi or having your own car and putting the name of your taxi on the side. Uber falls into the problem of not understanding that the reason they are losing money is cab companies which Uber is dont spend money on salaries

If its $X to ride and Uber adds a small fee. How could they ever lose money?

Mark Cuban had the opportunity to invest in Uber at 10 million valuation?? Thats like 13,567 times earnings lol. 100,000 invested would have been 1,356,700,000

When an industrious newcomer to our country worked slavishly to create a better life the pinnacle of his success was being the high bidder at a taxi medallion auction . Financing the purchase with a bank mortgage was the only way to pay ( highest price for a single medallion ;1.2 million dollars) . His ability to pay depended only on his hard work . Fast forward a few years when Ride sharing companies destroyed the taxi industry. His investment was worthless, his hard work could no longer be relied on to make his life better , and the agencies who governed and regulated his business offered no protection. Bankrupt and beaten he parked his cab on a tall bridge , threw the keys into the water below and made the last call on his cellphone to Uber for a ride home …..no.. just kidding.. he jumped .

I quite strange though. I think a lot of people will be worse off some days without a ride shate app. I think its really expensive. But it comes in clutch when your out with the homies drinking. I guess we should just drive drunk. Taxis aren't an option in most of the US.

The past few years silicone valley has become a shitty place we don’t want anything to do with. It’s a cesspool

Uber will probably take over the bus industry next. They are testing shuttles in a few locations right now.

Thanks Harry.

Can't help but notice when you pronounce 'platform' as 'platforma'. Is there a reason for this?

Don’t link the number of microservices to the complexity of the business. It’s just a design decision, Netflix could have create the same number of them. It doesn’t mean anything.

I just don’t understand where all there costs are!!!

I only used uber cause of the major discounts... no discounts. No uber. It's just way to expensive otherwise

Not really sure what is the base for the overall these of this video. I’d understand it 1 year ago, the all video ignore the earning last year of 1.9B which makes Uber valuation high but not crazy. May be i miss something

Any investment app that can be used from Latam?

Ubers wouldn’t be needed if we had affordable fast public transportation

The winners are the executives and the software engineers who jumped in the bandwagon during the early days. Everyone else loses.

There's absolutely no way Uber could be losing money. Their only expenses are developing an app, maintaining a server, and paying people $0.14/hour at their foreign call centers. They don't pay for cars. They don't pay for gas or maintenance on said cars, they don't pay for drivers, they don't pay for insurance on the cars or their employees, and on top of all this they're making $40+ on average per trip. There's no way it costs them anywhere near $40. The bandwidth/network traffic required for an Uber ride costs like $0.00004. What other expenses do they have? Unless they're blowing tens of billions of dollars a year on television ads for Boomers (because let's be real, who else watches television in 2024?), there's no way they're actually spending that money. They must be hiding it away in offshore accounts or maybe their servers are owned by another company, which they also own and they're paying 100,000x more than what it actually costs to host their system as a way to funnel their money to another company that exists in another country with low or non-existent tax. There's definitely something fishy going on.

Also software engineering pay is way too high. They have too many engineers getting paid way too much.

The music at 09:30 seems overdramatic for the context lol

What I find more fascinating is that a company that prays to gods of every religion just to see one profitable quarter somehow has its stock in green.

Thanks for sharing

How do Uber competitors survive then? In the UK there are at least 2, Bolt and Freenow.

What happens to Uber after self driving cars can go to pick-ups and drop-offs by themselves?

The biggest question for me is how they stayed in business for so long

The background music is much too distracting. Can you eliminate it?

I just don’t see how a company that can’t turn a profit can continue to exist. just shows how broken these tech startups are cause the people at the top still make so much money they still don’t care as long as investors stay on their knees for them.

Idk why but this is the funniest thumbnail I’ve ever seen in my entire life 😂😂 literally hurting from laughing

Tech peers? This is a taxi business, they are not selling software. Net margins of 40% would be ridiculous in this business segment.

I hope another company takes over, Uber has been a scam taking more than 50% of earnings from drivers.

I don’t see Uber turning a profit until they can replace their labor costs VIA self driving vehicles. Granted, I don’t think fully autonomous driving is that far away (on a national scale; in every city). I’m not angel investor or CEO, but when I watch all in and hear Jason talk about his Uber shares I laugh because as I see Uber it’s currently a fire pit of a company

Do an analysis on Vodafone Idea

How the f do they lose money when they take half of drivers' fare? All they need to do is maintain an app

Nailed it again !!!! Thanks !!!!!!!

My parents used to use Uber in 2010

Über isn't a tech company, it is a transport company.

Uber is a house of cards. In time, it will all come tumbling down.

all uber apps almost 4 years ago when me and my girlfriend were looking for an uber and I found out I was going to get charged 15% more

But it is really user friendly from consumer perspective

With all the money that has been thrown into Uber they could have ended the hunger in the world. To a business that is failing and will go into bankrupcy when they go out of money, try do get another funding round and nobody pays.This could happen any day.

If not investors and thirst for market share, Uber would be profitable

I have been using Uber on all continents. And concluded not to invest in the company, whatever the CNBC crowd in its ignorance is professing. On local level everywhere, Uber is under siege from local competitors who copy their OS, and are far better in managing their drivers.

This dude doesn't know but he's actually a corporate prophet

I wonder what could have happened between 2020 and 2023 🤔

It's the classic lose lose lose business model, Uber loses money, drivers don't get paid enough and customers pay too much. WCGW

I think uber should still employee those engineers but reduce the salary and remove stock compensation and if the employee are not happy just hire more Indian people they will be more than happy to just take 100k every year not a million like native people or Chinese people

Looks like an airline?