@@shacktime I am going to assume you're one of these ride share drivers who complains they aren't paid enough to participate in something completely VOLUNTARY, am I right? If so, get a real job like the rest of us who work 40+ hours a week for our pay, we don't drive around in our filthy cars in our pajamas whenever we want expecting benefits packages and 70K a year.
Well most of amazons profits come from their cloud services, and they would only go into the riding business if it could build their brand, and frankly i dont see it happening
Uber basically subsidizes each ride in order to keep fares down. Cheap rides plus decent pay and bonuses for drives = much less profit. Once they gain a bigger market share/ have a fleet of self driving cars I suspect rates will go up dramatically.
The Last Outlaw if you want Uber to be profitable, then they are. Uber would love nothing more than to not pay people, and keep higher and higher margins for themselves.
Drivers are like the number 1 cost to the company. I didn’t get that the drivers are the problem I think they were just summarizing some key factors the company has to manage in order to be profitable
@@alex5308 they don't pay the drivers, the customers do... They are spending billions on ai research so that they can take all the money and leave the drivers without a job...
Daniel E every company uses money it generates from sales to pay its employees. So yes technically customers pay the drivers but if there were no drivers Uber would keep that money. So obviously they would try to take out their number 1 cost which is the drivers if it were possible.
Daniel E the point I was trying to make is that the video wasn’t blaming the drivers as being a problem. They were just stating that drivers are a major expense to UBER and the fact that the drivers are asking for more money may potentially lead to increases in Uber’s overhead expenses.
If they keep cutting driving rates, they’ll lose good drivers and attract low quality ones, providing a low quality experience. This may hurt growth, but what do I know.
TH-cam Ryan is Driving, he drove for uber since it came out and made a whole channel based on his rides with of course asking permission of the riders to record. Then he got banned from the app cause they made a new policy where you cannot film
honestly isnt that already the truth?, I choose to drive for Lyft Only (started April 2019), alot people say u should drive for both, and i refuse. Their too much bad Karma around Uber, on top of it most people i pick up as Lyft Drive, they say they dont want to take uber anymore due to negative ride experiences, and being alot more expansive than lyft. Here issue about Tipping,
Its just a franchise though. They still get money though. I mean 51% 49% is still considered sold but that is till a big profit margin without the ownership hassle for small value money so looking it at an owners point of view it is still a win. As long as they lock in at the big value countries then they are good.
Uber has no expenses except insurance and rent for their buildings. They don’t pay for gas, car maintenance, or personal Auto insurance. All they do is collect a fee off of the drivers work how the hell are you not profitable with 75 billion dollars ? Uber is full of it.
To this day there are small cab companies who are in business and have been in business for decades. Drivers made money on fairs and tips. How Uber can't turn a profit is beyond me. Like Tesla it just takes in money with a promise of future profit years out and somehow this is ok with investors. Uber is not a company that cares to provide car service. It's just how they got to become this monster company.
I am betting that in the future they will be called "Dollar Store Cutthroat Taxi" or " Vomit Fraud Taxi" betting on a future with out the main ingredient, the ones that literally made these app companies any cash and a name, and these app owners are betting on A. I. Until they run the economy into the ground...
Here in Nigeria, Uber broke into market first, but later another ride sharing company called Taxify came in and for the last 2yrs, Taxify is wiping the floor with Uber lol
@@leay4 I am the prince of a Nigerian prince. In other for me to give u my social and credit card info, i need yours to first, so i can be sure you are not a russian bot
I think even most of the people at the top of this pyramid will lose their shirts. The future of their industry is autonomous AND electric. They are behind on autonomous and have zero ability to make electric cars. And the winner will have both. When Tesla turns on their Tesla Network, that day Tesla will be offering rides on a large scale at half or less what Uber charges, and Uber will be worthless. Like immediately worthless. And no one at Uber knows when it will die.
Executive spending is a tiny fraction of their losses. It's the wacky spending and unattainable schemes. Also I don't know if they are making squat before that spending. Probably nothing worth investing in.
@@jmh4ggg Tesla has huge costs to get the production up to speed, once its running at full speed, it expects to start making profit. Uber is just a money bleeding machine.
Exactly, they are making billions with very little overhead. Then they turn around and blow it on driverless cars and claim they are losing money...... What's worse is they won't raise rate to give the drivers a living wage, but I guarantee once they are driverless and they realize it cost more to maintain the cars than take advantage of humans. They will justify raising rates for their profits.
Driverless cars will eventually dominate the taxi business. The only reason I don't use Uber or Lyft is because I don't want to ride with strangers. Once Google or Tesla introduce a fully functional driverless taxi, I am going to use it.
@@walden6272 it's going to be awesome. I believe most people won't even own cars at that point, depending on price. They will be able to summon a driverless car at a moments notice. But for now, Uber needs to pay drivers a living wage, plus enough to keep maintenance up on vehicle. They are lying about not being profitable. The ride share service is extremely profitable. The research and corporate pay is not.
🙄 uber is NOT paying drivers.. drivers are giving a commission to Uber.. drivers are not the source of COST, they bring REVENUE. Uber needs to check its operating model to reduce the cost
Do I want to use Uber and other services where I’m subsidized by their investors? Sure. Do I want to own parts of these companies and be the one doing the subsidizing? Not so much. Enjoy the party while it lasts.
They make money from rides but spend tons on investment and litigation because all established taxies is all cities want to get it banned. You're not really subsidised in the sense that they lose money on each ride, just that overall they spend more than they rake in.
Marcus Collard They certainly have invested significantly and that is valid reason for running a loss as the company ramps up scale and grabs market share. Litigation costs against incumbents trying to keep them out is unfortunate but not altogether unexpected when you’re disrupting a monopolistic market. But with all the discounts that Uber have been throwing me to get me to ride more these past three months (I can’t imagine why they’d only do that just ahead of their IPO.....) I can’t help but to question whether they are doing this in a sustainable manner. Yes, I suspect these promos will go away and prices will eventually go up and if the introduction of driverless cars does materialize then sure the economics of each ride will be much more favourable. But that is a lot of medium/long term headwinds and the outcome is not clear yet. To clarify, I didn’t say that I wouldn’t touch this with a barge pole or anything like that. I like the service and think that a lot of cab services in many countries deserve a good shoeing from a disruptive competitor. But with the combination of current factors against these valuation levels, I’m not keen on owning a piece of this.
Desmond Cheung There is no real ‘ramp up’ or ‘grabbing market share’. Promotions, subsidies and advertising are infinite expenditures and their effects only last as long as their active. The biggest problem with Uber is that they have no infrastructure, no IP, no barriers to entry. Anyone offering a better price can ‘grab market share’, the competition will be endless. An app/website isn’t worth $70b by any stretch.
Drivers pay for the vehicles. Drivers pay for the gas. Drivers pay for the vehicle maintenance. Drivers pay for the insurance. Drivers also perform all of the work. Uber created an app, has ZERO working rideshare vehicles, and performs none of the work. The also take between 35% and 65% of the amount charge to the passengers. All that considered, if Uber isn't able to turn a profit with DRIVERS paying the operating expenses and doing all the work, how the hell will they ever find profitability? The Uber and Lyft IPOs had one goal... to allow initial investors to cash out of this money losing experiment and pass the losses on to foolish investors who buy stock based on hype rather than sound business analysis.
If you live in the city and not the suburbs, you know how inconvenient car ownership is. The future in most places is in cheap, rentable, self-driving EVs like these electric scooters you see everywhere if you ask me. But that is years away and who where Uber will be.
Uber drivers supply almost all of Uber's productive asset base including vehicles and fuel; at the end of the day those drivers take home starvation wages. Yet Uber still can't manage a net profit! Interesting business model.
I drive for Uber and I make great money and that’s after gas and oil change etc. you get what you want out of driving for ride share. Cannot be lazy and cherry pick. After taxes I’m still way on top. So much write offs it’s great. If your making less than minimum wage your not doing it right. I can only speak for Southern California as the market is huge.
philip teal hi Phillip, interested in my finances? Well if you would like to know I have a lot of my finances invested. Rest is property here. I’m pretty sure I’m good for the long run. Well that’s as long as the value stays up here in the South Bay. Things are looking good for the long run. May I ask what state you live in?
Basically what happened in Germany, when Uber tried to expand here. Got slapped by german courts, because the way they operated their company across the country was deemed illegal. They are still existant in a few cities, but don't really profit a lot there, since other taxi services are similiarly priced and equal, if not better in quality.
Basically it is just that. The issue is that self driving cars are still not safe enough to get acceptance not only from authorities but general public as well. They still need billions to spend and many years to develop their technologies. The real question is - will they get the investors to trust that Uber will actually earn money and not just keep spending it like they have for the past 5 years. They got huge investment deals in late 2018, but that money runs out way before they have a half decent self driving, self reliant car that could maybe, just maybe drive outside California (all those radars, LIDAR systems and cameras still won´t work well in places where there´s lots of rain, snow and mud). Self driving car is still 10 years in the future, for the time being Uber has to keep drivers on their app just as keeping riders happy. If they let it slide, just hoping for that their self driving SUV´s won´t fall over or crash into bikers, highway dividers etc, then Uber will be on thin ice.
Everything is a scheme not just Uber, all company’s are trying to make profit. If you were an owner of a business you will so your best to make money so your business won’t fail.
Hope they actually go out of business. .53 a mile with 8 cents a minute here in Orlando is ridiculous. No idea why there’s even just regular uber x drivers
I don't get why drivers go on rallies. They're not employees. They signed up for that rate. They don't have employee rights. They can quit whenever they want.
They signed up for a rate but it keeps on changing. Imagine starting a business that had one supplier and that supplier keeps on lowering the price of goods to make you less and less profitable, whose endgame is to have you eventually go broke because they want to replace you in the future with an automated kiosk who sells their wares without paying you. You can either take a loss on all you invested in (many of these drivers bought a car to do this because it was very profitable in the beginning) or fight for your business. Some people refuse to just lay down and die, and who could blame them? My argument is why work for someone who continues to active seek your demise with bringing on millions of part timers and eventually self driving cars?
They don't but they could especially if other competitor exist. Uber was 1st ride hailing in my country but other competitors were managed kick them out.
Uber/Lyft get 50% of the fare. If they are losing money can you imagine the drivers. They are making a lot money. I’ve never seen a company that doesn’t make money worth it a billions dollars.
Video claims that uber does not operate in Russia. That is not exactly true. You can use Uber app. Uber in Russia has merged with Yandex taxi so Yandex car will arrive.
This is just a failure of our form of capitalism to even allow this type of company. Very few employees with a company sky high valuation. The profit only comes from more valuation and capital. How is this sustainable?
I’m an Uber driver for 4 years. I used to make a living out of it, even bought a new car for that purpose. But now they lowered our rates, and we’re being paid very little for the job, and can’t even pay for my gas+insurance cost. I really hope they go bankrupt after Tesla starts their rideshare service.
Most people I know have both uber and lyft apps and just pick whatever will come faster and/or cheaper. As long as competition is around, it'll be good for consumers.
What are you talking about? Yeah, they are. They are able to carryover past loss. It's called NOL (NET OPERATING LOSS CARRYOVER)... THIS IS WHY THE WEALTHY ARE ABLE TO GET AWAY WITH PAYING MINIMAL TAXES CAUSE THEY FIND LOOPHOLES SET FORTH BY THE GOVERNMENT.
It's the business of scamming desperate people, by paying them less than minimum wage after subtracting the cost of the principle (cars, gas, insurance, etc). Obviously it's a fact they get paid less than minimum wage, but that is why these services exist.
If it will help you, I stopped by Mickey D's last night and noticed that they have the 2 for 5$ mix and match special on Big Macs, QPC and Filet of Fish sandwiches going on now...
Kinda off the subject of Tesla, but Uber and Lyft have gone public and their initial stock prices are about 7.5% below their predicted value. Furthermore, both of these companies have never turned a profit - Yet they are valued in the billions. So there you have the financial equivalent of the Twilight Zone - Investors pouring big bucks into essentially worthless companies. Unfortunately, the entire economy of the San Francisco Bay Area is based on this Ponzie Scheme and it's a matter of time before the whole mess crashes.
kansasthunderman1 unrelated? No. Tesla is coming out with their own self driving ride service. You just let your car do the work while you sleep/are at work
That's the part that stuck out to me is how they are allocating their capital. If they have that much money why don't they reinvest it back into the business???
Mandal Mandal well it is a loss, but the debt allows them to take a loss and in addition they put more debt into research and development. Their core business of driving people and delivering food is not profitable
Xipo86 - pay attention: He literally told you the problem in his question: no one knows enough details/logistics about why Uber/Lyft is a scam - so: they keep using them, regardless of the pay disparity Etc... and Uber will BLOCK you if 2-3 customers complain in their app about your car - or that youre a man instead of a woman or old instead of young or whatever... it’s ridiculous
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The drivers take on most of the cost of business. Car repair/maintenance, employment taxes and other employee costs, auto insurance, no overtime costs. They take such a huge cut from fares. How can they be losing money?
Uber paying drivers!? That is not true at all, Drivers pay Uber a 30 to 40 sometimes even 50% commission fee for using the platform. They even take money off the $5 cancellation fee which is bs, I drove for Uber a few months and just stopped because it's not worth it, you're using YOUR car, Your insurance, your gas, YOUR time and they take 40 to 50 bucks out of a 100 you make and give you crappy bonuses like 20 DLS for 50/60 rides all that not taking into account those crappy rides who'll damage your car
I'll ask a different question: what is the difference between investment funds subsidizing Uber for years until it murders all competition and any kind of government subsidy? Cause the later are thought of as intervensionism and having negative impact on the market, while the former is perfectly fine.
If you think Tesla will release fully level 5 autonomous taxis within this decade, you are delusional. Their current technology is only at a low level 2. Also, these taxis would never be able to function in snowy weather in the more northern states for 4-5 months out of the year. New York is kinda an important state for their success, and it snows badly there.
@@JakeobE wrong on all points, level 5 is expected in 2-5 years. Any weather condition a human can drive in, teslas' trained neural net can drive in. Its brain learns and trains on better visual data than a driver could ever get. Did you see the tesla autonomous day lectures?
@@hunternewberry5860 will you like to be the first to let autonomous cars drive you every where? think about how long it'll take you to trust them, then add a few years for bureaucracy and anti-autonomy riots, that's how long it'll take... plus most people are going to want to keep their cars, me included... finally I saw that tesla or is it uber self driving car knock that lady and her bicycle off the road, no attentive human driver will make that mistake, it wasn't even raining...
I think it's nuts that Uber is making a loss considering their low overheads. They must either be pumping it all into R&D or have incredible mismanagement or they're secretly syphoning it off to the Cayman Islands
Yes but looking at it from a five forces point of view, there is intense rivalry already existing in the industry, there are no real barriers to entry for new competitors, buyers have loads of bargaining power because they can easily switch, drivers take a lot of the eventual ride fare and there is always the the threat of new technology usurping uber. They dont have really have a way to gain huge margins, it is not necessarily uber itself that is unprofitable, more like the whole industry model is.
Loosing court cases in Europe. Like a ton of loosing court cases. They loosing Court cases in the USA too. Like the one in new york what costed them 500 million. Add what Uber need to follow european Transportation laws. The same ones what every Taxi or Bus company need to follow the overhead growths a lot.
I just started doing uber. What I don't find fair, They had me pick up a person 15 miles away from my location and drop the person off 1.5 miles away. I only got $3.00 for that ride... I should of got paid for the 15 miles I had to drive to pick up the stoned kid.
I refrain from using uber or lyft, mostly because of the number of people who've come forward about sexual harassment and assault by drivers, and the fact that they pay their drivers very little. Plus, I'd rather pay to use public transport to support the improvement of the infrastructure and reduce the number of cars on the road.
isn't it a shame how many great ideas that can make humanity much more efficient aren't actually profitable kinda makes you question the underlying system
The research done for this video makes little sense right now. Just look at the statistics: (1) the Uber app has 500 millions download (this means more people use it = customers). While Lyft has only 10 millions downloads (less customers). (2) Lyft pays less to its drivers, which forces more of them to quit. Which also means less income for Lyft. While Uber still pays the drivers a little more, which means drivers make more money and Uber takes away a certain percentage from each ride. (3) The video says Uber has to pay the driver. Really!!!!!!? I don't think so. I'm a driver for Uber and Lyft and all I do is have my app downloaded, use my car and my fuel to give ride, charge a rightful fee for my service, and Uber takes away a percentage from my earnings. In a sense, uber is just an app that allows me to get in touch with the customers. There is just so much misleading information in this video that only an Uber or Lyft driver would understand.
Uber and Lyft are losing money because the Driver turn over rate is really high. It’s not that Drivers are asking for more, they keep manipulating the driver pay so the 80/20 split no longer exists, 60/40 and 50/50 is the new norm. Newer drivers are unaware of this and the Rideshare companies advertise to them in order to control future driver pay in the company’s favor not the driver.
Uber and Lyft charge approximately 60% less than the regular taxis. They are charging way below the market average. They also take between 45% to 47% of the driver's fare. I'am astonished that no one has even mentioned these important facts.
It's basically a competition between uber and lyft as to who runs out of money first. Then the winner will raise rates and expose itself to new competition. And the cycle continues....
Yea , Uber is loosing money. But they can pay 45million to CEO. Uber CEO Dara Khosrowshahi salary and total compensation: $45 million - Business Insider.Apr 11, 2019.
My question is how are they not making money? They basically make an app and have 3 MILLION drivers driving for them, who don't work for them, who maintains all their own vehicles and pays all their car expenses like fuel and insurance. If they gave the driver 90% of the fare, they should STILL be making money. And their self driving tech is being funded by external sources!
Do drivers pay for advertising, insurance, rent for uber hq and buildings around the world where people go to sign up and car checkup, lawsuits, developers, etc etc.?
They should make uber pitch in shark tank and get rekt by kevin saying stuff like " you're not even making any MONEY !! your valuation is insane. however I'm willing to take a risk and offer you what you asked but i need $1 royalty in perpetuety per ride "
Drivers are not “now asking for more money”... it’s cause Uber keeps lowering drivers rates to the point where drivers have nothing to lose even if they turn on them... karma...
Your mistake is the assumption that Uber is trying to build a business. They use the seed money to subsidize drivers to say, "See, increasing revenues! More seed money, please." Meanwhile, the top 5 executives siphon off $145 million per year in compensation, plus $10 million per year in security, home improvements, and travel. The executives at UBER are incredibly smart. They are excellent in shearing the foolish sheep. When the house of cards collapses they will each cry to the bank with $200 - $400 million. UBER is brilliant!!!
Im a driver for Uber for 3 years now with over 2,700 trips. When I first started, I would be making decent money from 15-25 an hour on full 8 hour shift.
Uber loses money because uber doesn't like to pay taxes. Once they IPO, their founders get rich beyond their wildest dreams and all without paying a single cent of tax. Well done.
Cannot compare Uber to Amazon. Let’s remember Uber’s cannot raise fees due to competition and also cannot take a larger share of the revenue due to drivers pay.They are stuck in a unprofitable business. Uber’s whole idea was to get autonomous driving on the road, but even the founder was worried that Tesla could dominate the space with its technology. Tesla is at a better position . They have the most amount of data and the fact that they can turn existing Tesla into a ride sharing service without introducing a fleet of cars in every city , is like 5 years ahead of Uber. Now Uber can always partner up with Tesla, but that would make Uber unprofitable after paying fees to the car owner and Tesla. Tesla can easily cut out Uber and go to market quicker. Trust me there is no brand loyalty like there is for Amazon or a Tesla. People don’t mind using Lyft or any other ride sharing app, if it is cheaper and has the same features. I just don’t see a road to profitability for Uber in the next 5 years.
5 years is a very kind estimation. Don’t think they can ever become profitable in a no barriers to entry business. A new player will always pop up and undercut Uber. Said player will eventually get undercut by another player. List goes on and on. Like you said, there is no brand loyalty because of the very nature of the business. It’s simply an all out price war! Only way I can see them getting a consistent flow of business is by partnering up with firms to replace the firms obligation to provide a vehicle to its executives. I believe Uber has already started doing so in NYC.
How are they stiffing the cash cow? The video is about how they LOST 3 billion dollars this year, they need to be efficient with what money they do have.
Cost to own a car is around 300-400$ in my city. I live nearby a walgreens, and couple of grocery stores. I need car only in weekends and last month i spend 104$ on uber. Still i save 200-300$ last month.
I honestly check both apps to see which price is cheaper and pick from there. I’m not loyal to Uber nor Lyft
Also whos closer
Same
Ian Pollard you should look up how dangerous it is to underpay commercial drivers.
Jeff Byrnes I conceal carry
@@shacktime I am going to assume you're one of these ride share drivers who complains they aren't paid enough to participate in something completely VOLUNTARY, am I right? If so, get a real job like the rest of us who work 40+ hours a week for our pay, we don't drive around in our filthy cars in our pajamas whenever we want expecting benefits packages and 70K a year.
all of them will be shock when amazon decided to make prime ride
@dandanthetaximan they already have amazon air. the question for amazon is, why not? amazon just being amazon, they want to enter everything.
Yeah Amazon is winning right now although their warehouse employees get annoying after a while
Well most of amazons profits come from their cloud services, and they would only go into the riding business if it could build their brand, and frankly i dont see it happening
Amazon has lots of things but not all of them are successful
On drones!!!
Drivers pay uber commission uber doesn’t pay drivers
Lol yeah but they give those sweet bonuses lol. $30 for 40 rides. Umm don’t know who does the math on uber but the rider get screwed.
Uber basically subsidizes each ride in order to keep fares down. Cheap rides plus decent pay and bonuses for drives = much less profit. Once they gain a bigger market share/ have a fleet of self driving cars I suspect rates will go up dramatically.
Jorge Rios The drivers get screwed not the rider’s
Kris Winiarz Drivers don’t get good deal with uber they said it in their IPO documents that keeping drivers pay low is part of their business plan
gendalfff Uber gets 25% commission per ride without doing anything for drivers or riders
I like how they try to make it seem like the drivers are the problem.
The Last Outlaw if you want Uber to be profitable, then they are. Uber would love nothing more than to not pay people, and keep higher and higher margins for themselves.
Drivers are like the number 1 cost to the company. I didn’t get that the drivers are the problem I think they were just summarizing some key factors the company has to manage in order to be profitable
@@alex5308 they don't pay the drivers, the customers do... They are spending billions on ai research so that they can take all the money and leave the drivers without a job...
Daniel E every company uses money it generates from sales to pay its employees. So yes technically customers pay the drivers but if there were no drivers Uber would keep that money. So obviously they would try to take out their number 1 cost which is the drivers if it were possible.
Daniel E the point I was trying to make is that the video wasn’t blaming the drivers as being a problem. They were just stating that drivers are a major expense to UBER and the fact that the drivers are asking for more money may potentially lead to increases in Uber’s overhead expenses.
I don't know how Uber can possibly lose money when they take so much of the cut away from drivers. And all they do is maintain an app.
They don't. It's just a loophole to avoid paying tax on profits for the foreseeable future.
They write everything off even the drivers pay its a expense they pay themselves millions so they company is losing but the employees are getting paid
They spend a lot of money on R&D
Self driving cost a lot
There is more to it lol
It compared itself to Amazon? That’s a big weird flex
First, nerd
Well what they said is true.
Amazon back then used to lose lot of money , bezos convinced investors to not give in.
Sup kim
Tesla will be the one that becomes Amazon of transportation. Killing Uber and lyft.
69
If they keep cutting driving rates, they’ll lose good drivers and attract low quality ones, providing a low quality experience. This may hurt growth, but what do I know.
You know stuff lol
But the only problem is that the drivers work for them because there is no competition that pays them more
It’s already happening. Most of my Lyft drivers aren’t much different than poor taxi rides of the past.
TH-cam Ryan is Driving, he drove for uber since it came out and made a whole channel based on his rides with of course asking permission of the riders to record. Then he got banned from the app cause they made a new policy where you cannot film
honestly isnt that already the truth?, I choose to drive for Lyft Only (started April 2019), alot people say u should drive for both, and i refuse. Their too much bad Karma around Uber, on top of it most people i pick up as Lyft Drive, they say they dont want to take uber anymore due to negative ride experiences, and being alot more expansive than lyft. Here issue about Tipping,
Uber closed its operation in Russia and sold the accumulated customer base to its competitor Yandex.
Dias Amreé Uber also did the same in China with DiDi. Uber doesn’t seem to work well in communist nations.
So did in China and India
Uber sold to Grab in the Philippines. Its a willing loss. Not worth the hassle because the value of money is small I guess.
Its just a franchise though. They still get money though. I mean 51% 49% is still considered sold but that is till a big profit margin without the ownership hassle for small value money so looking it at an owners point of view it is still a win. As long as they lock in at the big value countries then they are good.
Same in South East Asia
Uber has no expenses except insurance and rent for their buildings. They don’t pay for gas, car maintenance, or personal Auto insurance. All they do is collect a fee off of the drivers work how the hell are you not profitable with 75 billion dollars ?
Uber is full of it.
Uber is buying all the politicians to work in there city’s
@@limojr1 A wise joe you are indeed, go tell it on the mountains for the sheeple don't understand this.
Uber has lots of money, they claim "No Profit" to avoid the tax man.
To this day there are small cab companies who are in business and have been in business for decades. Drivers made money on fairs and tips. How Uber can't turn a profit is beyond me. Like Tesla it just takes in money with a promise of future profit years out and somehow this is ok with investors. Uber is not a company that cares to provide car service. It's just how they got to become
this monster company.
they are a scam thats why.
Without drivers, Uber will stop making money. Without Uber, life goes on.
Uber is just an updated/slightly improved version of a very basic business.
I am betting that in the future they will be called "Dollar Store Cutthroat Taxi" or " Vomit Fraud Taxi" betting on a future with out the main ingredient, the ones that literally made these app companies any cash and a name, and these app owners are betting on A. I. Until they run the economy into the ground...
Reminds me of apple
Uber is a greedy middle man, not a necessary part of the equation.
The prices get crazy high during rush hour. They terminated their point system.
They will always have drivers because they let illegal immigrants that don’t speak English drive and they share cars and drive 24/7
Here in Nigeria, Uber broke into market first, but later another ride sharing company called Taxify came in and for the last 2yrs, Taxify is wiping the floor with Uber lol
I am a Nigerian prince, and in order to collect all $10,000 USD, you must put your social security and Credit card number here.
Jack 😂😂
Basically competing on price? Not a great way to run a business.
Kieran Mullen who says they are competing on price?
@@leay4 I am the prince of a Nigerian prince. In other for me to give u my social and credit card info, i need yours to first, so i can be sure you are not a russian bot
Uber is the most glorified pyramid scheme on Earth.
Explanation please. It’s just a taxi service for those of us who aren’t drivers.
I think even most of the people at the top of this pyramid will lose their shirts. The future of their industry is autonomous AND electric. They are behind on autonomous and have zero ability to make electric cars. And the winner will have both. When Tesla turns on their Tesla Network, that day Tesla will be offering rides on a large scale at half or less what Uber charges, and Uber will be worthless. Like immediately worthless. And no one at Uber knows when it will die.
I hope this explains more
americanaffairsjournal.org/2019/05/ubers-path-of-destruction/
Chris st john-thanks
Well, there's also the US government...
It's like investing in the Titanic: Whoa it's so big! Must be good.
Not sure I'm following the analogy the titanic didnt sink because it wasnt "good" it sunk because it hit an iceberg.
@Otis Snarky It hit the iceberg because it was too late to steer clear of it by the time it was visible
@Otis Snarky actually the potential danger that he was warned about was a completely unrelated non-iceberg obstruction
@Otis Snarky good counterargument
That's what Rose said about Jack.
Uber is losing money because of extremely high executive salary and its wacky spending on risky and unattainable schemes.
Sounds like Tesla
Executive spending is a tiny fraction of their losses. It's the wacky spending and unattainable schemes. Also I don't know if they are making squat before that spending. Probably nothing worth investing in.
@@jmh4ggg Tesla has huge costs to get the production up to speed, once its running at full speed, it expects to start making profit.
Uber is just a money bleeding machine.
@@jmh4ggg and they are the worst cars, catch fire easy due to the build
@@HunterShows How much do they spend on these wacky schemes?
not making profits but the ceo got a 40 mil salary.
That's part of the losses lol.
They still have to pay them which is way less cost than anything else
They do way more work than anyone else
When looking for investment you do look at management salary. If Uber revenue is not increasing but CEO salary is, then it is definitely a red signal.
You realize that a profit can only be made after expenses including wages are paid ?
Uber is losing money because of high executive pay, and overspending on research and development for self driving cars costs.
I was thinking the same thing,
Exactly, they are making billions with very little overhead. Then they turn around and blow it on driverless cars and claim they are losing money...... What's worse is they won't raise rate to give the drivers a living wage, but I guarantee once they are driverless and they realize it cost more to maintain the cars than take advantage of humans. They will justify raising rates for their profits.
Driverless cars will eventually dominate the taxi business. The only reason I don't use Uber or Lyft is because I don't want to ride with strangers. Once Google or Tesla introduce a fully functional driverless taxi, I am going to use it.
@@walden6272 it's going to be awesome. I believe most people won't even own cars at that point, depending on price. They will be able to summon a driverless car at a moments notice. But for now, Uber needs to pay drivers a living wage, plus enough to keep maintenance up on vehicle. They are lying about not being profitable. The ride share service is extremely profitable. The research and corporate pay is not.
@@AnonymousPersonAP damn, that was informative
🙄 uber is NOT paying drivers.. drivers are giving a commission to Uber.. drivers are not the source of COST, they bring REVENUE. Uber needs to check its operating model to reduce the cost
You are playing the game of semantics. Uber is 100% in charge of cash flow, ride charges, etc.
Allen Z that’s he’s an uber driver lol
Do I want to use Uber and other services where I’m subsidized by their investors? Sure. Do I want to own parts of these companies and be the one doing the subsidizing? Not so much.
Enjoy the party while it lasts.
They make money from rides but spend tons on investment and litigation because all established taxies is all cities want to get it banned. You're not really subsidised in the sense that they lose money on each ride, just that overall they spend more than they rake in.
Marcus Collard Actually He is right. Uber lose on many rides just for the sake of getting market share. In the process They underpay drivers.
Marcus Collard They certainly have invested significantly and that is valid reason for running a loss as the company ramps up scale and grabs market share. Litigation costs against incumbents trying to keep them out is unfortunate but not altogether unexpected when you’re disrupting a monopolistic market.
But with all the discounts that Uber have been throwing me to get me to ride more these past three months (I can’t imagine why they’d only do that just ahead of their IPO.....) I can’t help but to question whether they are doing this in a sustainable manner. Yes, I suspect these promos will go away and prices will eventually go up and if the introduction of driverless cars does materialize then sure the economics of each ride will be much more favourable. But that is a lot of medium/long term headwinds and the outcome is not clear yet.
To clarify, I didn’t say that I wouldn’t touch this with a barge pole or anything like that. I like the service and think that a lot of cab services in many countries deserve a good shoeing from a disruptive competitor. But with the combination of current factors against these valuation levels, I’m not keen on owning a piece of this.
you seem smart @@desmondcheung5117 what are your top 5 investments?
Desmond Cheung There is no real ‘ramp up’ or ‘grabbing market share’. Promotions, subsidies and advertising are infinite expenditures and their effects only last as long as their active. The biggest problem with Uber is that they have no infrastructure, no IP, no barriers to entry. Anyone offering a better price can ‘grab market share’, the competition will be endless. An app/website isn’t worth $70b by any stretch.
Theyre using drivers until the robots take over . Smh
Yep
😂 😂 😂 😂 😂 😂
Well drivers should be pissy and should be grateful they know in advance so they can pick a skill and get a career
@fladave99 Mills How does that make Uber a communist company? Do you even know that communism and private company don't even fit together?
They can't even pay drivers right, what makes you think they can afford hundreds to thousands of 150,000 robot cars lmfaoooo ,
Drivers pay for the vehicles. Drivers pay for the gas. Drivers pay for the vehicle maintenance. Drivers pay for the insurance. Drivers also perform all of the work.
Uber created an app, has ZERO working rideshare vehicles, and performs none of the work. The also take between 35% and 65% of the amount charge to the passengers.
All that considered, if Uber isn't able to turn a profit with DRIVERS paying the operating expenses and doing all the work, how the hell will they ever find profitability?
The Uber and Lyft IPOs had one goal... to allow initial investors to cash out of this money losing experiment and pass the losses on to foolish investors who buy stock based on hype rather than sound business analysis.
Amen
Agree 100%! If drivers feel underpaid and Uber is also losing money, how will this business model ever work?
Don't forget to mention that drivers also have to pay the taxes..
you are very smart. I thought i'm the only person that knew the company is a scam.
After the IPO on Thursday, Uber is now valued at $82.4 billion.
The graph at 2:22 is so messed up 😂 87.5% looks like 97.5%
Andrey Ostryagin no it doesn’t. Check your eyes
@@Eagles2020 YES, it is.
No it doesnt check your eyes.
Harnoor Singh you should get eyes checked
The black area to the right of the 87.5% should be the size of the 12.5% yellow graph.
1:17
“Humans will one day forgo owning their physical cars in favor of an on demand service like Uber or Lyft.”
Ya, not this human
Lawyers will make sure that never happens.
If you live in the city and not the suburbs, you know how inconvenient car ownership is. The future in most places is in cheap, rentable, self-driving EVs like these electric scooters you see everywhere if you ask me. But that is years away and who where Uber will be.
I'll never give up my transportation. I refuse to trust any company or government to help me get anywhere
if its extremely cheap, i might consider it temporarily. not like _economically challenged_ people would have a choice, anyway.
@@r.d.9399 I assume you build your own roads to drive on too?
Uber drivers supply almost all of Uber's productive asset base including vehicles and fuel; at the end of the day those drivers take home starvation wages. Yet Uber still can't manage a net profit! Interesting business model.
Uber drivers make less than minimum wage and pay gas and get all the wear and tear on their cars.
And the company was getting their money for doing not much
I drive for Uber and I make great money and that’s after gas and oil change etc. you get what you want out of driving for ride share. Cannot be lazy and cherry pick. After taxes I’m still way on top. So much write offs it’s great. If your making less than minimum wage your not doing it right. I can only speak for Southern California as the market is huge.
Streets of Los Angeles Hows your Roth or 401k looking like??
philip teal hi Phillip, interested in my finances? Well if you would like to know I have a lot of my finances invested. Rest is property here. I’m pretty sure I’m good for the long run. Well that’s as long as the value stays up here in the South Bay. Things are looking good for the long run. May I ask what state you live in?
You got health insurance?
Warren buffet is not buying Uber and I am not either.
Warren also admitted that not investing on Amazon was a big mistake.
Warren also thinks crypto is stupid.
Shubham Tripathi warren is right about that...cripto is stupid AF
@@PoshBubbles crypto is garbage. Even a single celled organism can figure out it is a bubble.
If they regulate uber like taxi they would be out of business tomorrow
Basically what happened in Germany, when Uber tried to expand here. Got slapped by german courts, because the way they operated their company across the country was deemed illegal. They are still existant in a few cities, but don't really profit a lot there, since other taxi services are similiarly priced and equal, if not better in quality.
Thats what i always wanted to know why Uber is not regulated and taxis are
As others have said, Uber is the ultimate pyramid scheme 😂
Basically it is just that. The issue is that self driving cars are still not safe enough to get acceptance not only from authorities but general public as well. They still need billions to spend and many years to develop their technologies. The real question is - will they get the investors to trust that Uber will actually earn money and not just keep spending it like they have for the past 5 years. They got huge investment deals in late 2018, but that money runs out way before they have a half decent self driving, self reliant car that could maybe, just maybe drive outside California (all those radars, LIDAR systems and cameras still won´t work well in places where there´s lots of rain, snow and mud). Self driving car is still 10 years in the future, for the time being Uber has to keep drivers on their app just as keeping riders happy. If they let it slide, just hoping for that their self driving SUV´s won´t fall over or crash into bikers, highway dividers etc, then Uber will be on thin ice.
Every one who keeps calling Uber a pyramid scheme are idiots, and they should look up what a pyramid scheme actually is!
Everything is a scheme not just Uber, all company’s are trying to make profit. If you were an owner of a business you will so your best to make money so your business won’t fail.
Hope they actually go out of business. .53 a mile with 8 cents a minute here in Orlando is ridiculous. No idea why there’s even just regular uber x drivers
Uber was banned in Malaysia by the taxi community ,now we're using Grab.
I don't get why drivers go on rallies. They're not employees. They signed up for that rate. They don't have employee rights. They can quit whenever they want.
They signed up for a rate but it keeps on changing. Imagine starting a business that had one supplier and that supplier keeps on lowering the price of goods to make you less and less profitable, whose endgame is to have you eventually go broke because they want to replace you in the future with an automated kiosk who sells their wares without paying you. You can either take a loss on all you invested in (many of these drivers bought a car to do this because it was very profitable in the beginning) or fight for your business.
Some people refuse to just lay down and die, and who could blame them? My argument is why work for someone who continues to active seek your demise with bringing on millions of part timers and eventually self driving cars?
@@casualsuede They also signed up for rate changing. so invalid argument.
@@Dabidto You're the only boot licker in this comment section lmao. I guess you love to kiss your own manager's ass all the time 😌
@@goosty17 If noticing something wrong and calling it out is being a boot licker, then call me president of boot lickers.
They don't but they could especially if other competitor exist. Uber was 1st ride hailing in my country but other competitors were managed kick them out.
Uber/Lyft get 50% of the fare. If they are losing money can you imagine the drivers. They are making a lot money. I’ve never seen a company that doesn’t make money worth it a billions dollars.
Video claims that uber does not operate in Russia. That is not exactly true. You can use Uber app. Uber in Russia has merged with Yandex taxi so Yandex car will arrive.
This is just a failure of our form of capitalism to even allow this type of company. Very few employees with a company sky high valuation. The profit only comes from more valuation and capital. How is this sustainable?
I’m an Uber driver for 4 years. I used to make a living out of it, even bought a new car for that purpose. But now they lowered our rates, and we’re being paid very little for the job, and can’t even pay for my gas+insurance cost.
I really hope they go bankrupt after Tesla starts their rideshare service.
iOS God 🤔🤔 would that make you unemployed??😣😣
You shouldn't have bought a new car, that was a bad idea. 10-year old Toyota/Honda/Mazda would do just fine and much wiser financially.
“Give up your car in favor of Uber”? Yea that sounds cool till Uber banns you for wrongthink and your left with a way too work.
Most people I know have both uber and lyft apps and just pick whatever will come faster and/or cheaper. As long as competition is around, it'll be good for consumers.
Amazon is not profitable reason why they have not paid a dime in taxes. Taxes are based on profit , NOT revenue.
What are you talking about? Yeah, they are. They are able to carryover past loss. It's called NOL (NET OPERATING LOSS CARRYOVER)... THIS IS WHY THE WEALTHY ARE ABLE TO GET AWAY WITH PAYING MINIMAL TAXES CAUSE THEY FIND LOOPHOLES SET FORTH BY THE GOVERNMENT.
Amazon is profitable (especially from their cloud services), they just do clever paperwork to avoid certain taxes
Amazon is extremely profitable you moron
Investors should sell out and walk away. Investors are the next target after the drivers. Beware!
What do you mean by that? That investors get less dividents from a company which has good growth potential and is still in the red?
💯
It's the business of scamming desperate people, by paying them less than minimum wage after subtracting the cost of the principle (cars, gas, insurance, etc). Obviously it's a fact they get paid less than minimum wage, but that is why these services exist.
They are talking in terms of millions, billions,trillions. Here I'm . Can't even afford McD :-|
If it will help you, I stopped by Mickey D's last night and noticed that they have the 2 for 5$ mix and match special on Big Macs, QPC and Filet of Fish sandwiches going on now...
I'm really sorry for the loss of your puppy @John Wick
junior chik is 5 bukaroos that off the value menu mabey you just ordering the "gourmet" stuff i could see how then
You're not alone. :)
Uber is doomed, Tesla will destroy it
Kinda off the subject of Tesla, but Uber and Lyft have gone public and their initial stock prices are about 7.5% below their predicted value.
Furthermore, both of these companies have never turned a profit - Yet they are valued in the billions.
So there you have the financial equivalent of the Twilight Zone - Investors pouring big bucks into essentially worthless companies.
Unfortunately, the entire economy of the San Francisco Bay Area is based on this Ponzie Scheme and it's a matter of time before the whole mess crashes.
🤣🤣🤣Tesla? You mean another unprofitable business that abuses employees? 🤣🤣🤣
kansasthunderman1 unrelated? No. Tesla is coming out with their own self driving ride service. You just let your car do the work while you sleep/are at work
This could just be an excuse to pay their drivers less 😯
They can’t pay us any less. In all markets drivers get paid pennies on the dollar.
Uber was eaten alive in Southeast Asia.
Grab is king in the region.
Uber and Grab had agreement.
But in Indonesia
Gojek: hold my teh botol
Uber is a giant, so many riders. I drive full time, and Uber has demand much greater than Lyft. About 3 to 1
Why was Uber allowed to enter a market without having to abide by rules, regulations, and laws cab companies have had to abide by for decades?
Cuz there’s money to be made... and this is America.
They do in Australia
But the Uber drivers aren't getting more. Nor are Lyft drivers.
How are they even losing money if they don't pay for gas and repairs.
Someone will eventually buy Uber/Lyft out.
I agree,
What are u doing here
Uber initial price $42 on May 10th. Today at $37.
Btw this comment was posted on 14th may.
Right now, it’s down to $20.29
Mike Philips up $37.72
It’s like that one kid who claims they know how to play basketball and scream “AND1!!” every time he makes a shot
The movie fury!? Great movie
I don't think most ppl would get that bball reference. I laughed though, there always was that one kid lol.
JAMES HARDEN
And1 is actually how I learned basketball lol
Sooooo they're not losing money, they're just investing it back in research lol
Mandal Mandal they are losing money through operations. In addition to that they are investing all of the debt they raise into new tech
That's the part that stuck out to me is how they are allocating their capital. If they have that much money why don't they reinvest it back into the business???
Jae West they are reinvesting everything back into their business
that would be the correct answer, it isn't a loss it is only an investment.
Mandal Mandal well it is a loss, but the debt allows them to take a loss and in addition they put more debt into research and development. Their core business of driving people and delivering food is not profitable
So... is anyone else just sick of everything becoming a damn service...
Globalization. The future would be interesting.
Xipo86 - pay attention: He literally told you the problem in his question: no one knows enough details/logistics about why Uber/Lyft is a scam - so: they keep using them, regardless of the pay disparity Etc... and Uber will BLOCK you if 2-3 customers complain in their app about your car - or that youre a man instead of a woman or old instead of young or whatever... it’s ridiculous
Dont remember where or when i heard or read this but, the American economy is based on providing service, once manufacturing left
I offer a service where I charge $9.99/month to read TH-cam comments for you and provide you well written summary. Save lots of time! Video replies can be added for just $3.99.
Oh yeah ima give you a free ride, free food, free entertainment. No it can't work like that, it's called socialism!
The drivers take on most of the cost of business. Car repair/maintenance, employment taxes and other employee costs, auto insurance, no overtime costs. They take such a huge cut from fares. How can they be losing money?
cause the guys at corporate are doing drugs and hookers.
Uber paying drivers!? That is not true at all, Drivers pay Uber a 30 to 40 sometimes even 50% commission fee for using the platform. They even take money off the $5 cancellation fee which is bs, I drove for Uber a few months and just stopped because it's not worth it, you're using YOUR car, Your insurance, your gas, YOUR time and they take 40 to 50 bucks out of a 100 you make and give you crappy bonuses like 20 DLS for 50/60 rides all that not taking into account those crappy rides who'll damage your car
if investments banks aren't gonna continue funding uber, why should the public?
I'll ask a different question: what is the difference between investment funds subsidizing Uber for years until it murders all competition and any kind of government subsidy? Cause the later are thought of as intervensionism and having negative impact on the market, while the former is perfectly fine.
Uber valuation now: $75 billion
Uber valuation after tesla taxi: -$75 billion
If you think Tesla will release fully level 5 autonomous taxis within this decade, you are delusional. Their current technology is only at a low level 2. Also, these taxis would never be able to function in snowy weather in the more northern states for 4-5 months out of the year. New York is kinda an important state for their success, and it snows badly there.
@@JakeobE wrong on all points, level 5 is expected in 2-5 years. Any weather condition a human can drive in, teslas' trained neural net can drive in. Its brain learns and trains on better visual data than a driver could ever get. Did you see the tesla autonomous day lectures?
@@hunternewberry5860 will you like to be the first to let autonomous cars drive you every where? think about how long it'll take you to trust them, then add a few years for bureaucracy and anti-autonomy riots, that's how long it'll take... plus most people are going to want to keep their cars, me included... finally I saw that tesla or is it uber self driving car knock that lady and her bicycle off the road, no attentive human driver will make that mistake, it wasn't even raining...
Eventually Uber and Lyft will have self driving cars and won’t need drivers hence the reason why going public was important for more capital
I think it's nuts that Uber is making a loss considering their low overheads. They must either be pumping it all into R&D or have incredible mismanagement or they're secretly syphoning it off to the Cayman Islands
Yes but looking at it from a five forces point of view, there is intense rivalry already existing in the industry, there are no real barriers to entry for new competitors, buyers have loads of bargaining power because they can easily switch, drivers take a lot of the eventual ride fare and there is always the the threat of new technology usurping uber. They dont have really have a way to gain huge margins, it is not necessarily uber itself that is unprofitable, more like the whole industry model is.
Uber takes over half of the fare and gives drivers crap these days
Loosing court cases in Europe.
Like a ton of loosing court cases.
They loosing Court cases in the USA too.
Like the one in new york what costed them 500 million.
Add what Uber need to follow european Transportation laws.
The same ones what every Taxi or Bus company need to follow the overhead growths a lot.
I agree don’t let Uber fool you they have find a way to make appear like they are losing money
Once Tesla and Waymo's self-driving cars start becoming operable to the public, expect Uber and Lyft to take a real dump
yeah, because majority people who use Uber have an extra $100k+ Just lying around ?
Uber takes 50-60% of my earnings. How are they losing money
Their expenses are far more than 50-60% of the fare.
@@censormedaddy u stupid wt expenses do they have
Helmand Khan did you not hear the $1 billion investment in researching new technology
@@beautyluvahh007 lol
The title is not answered tho
Probably cause we all know the only way theyll make money is replacing drivers with driverless cars. Or making prices sky high.
@@mikeg9b I don't know I don't speak English
I just started doing uber. What I don't find fair, They had me pick up a person 15 miles away from my location and drop the person off 1.5 miles away. I only got $3.00 for that ride... I should of got paid for the 15 miles I had to drive to pick up the stoned kid.
Lol do do a job like that again you can cancel if you want
@@YousafKhan-uw4lr then it would of been a waist of a 15 mile drive there to just cancel outside the house.
I refrain from using uber or lyft, mostly because of the number of people who've come forward about sexual harassment and assault by drivers, and the fact that they pay their drivers very little.
Plus, I'd rather pay to use public transport to support the improvement of the infrastructure and reduce the number of cars on the road.
isn't it a shame how many great ideas that can make humanity much more efficient aren't actually profitable
kinda makes you question the underlying system
Company is rich but the drivers are broke but they still drive,good people when are you going to wake up.
Ruben Cruz drivers should stop driving for it , uber doesn’t care about drivers life
Ruben Cruz company is rich? They are losing billions each year. They have a high valuation but that will tank if they keep this up
Never used ride-sharing....probably never will. I own a contraption called a car.
The research done for this video makes little sense right now. Just look at the statistics:
(1)
the Uber app has 500 millions download (this means more people use it = customers). While Lyft has only 10 millions downloads (less customers).
(2)
Lyft pays less to its drivers, which forces more of them to quit. Which also means less income for Lyft. While Uber still pays the drivers a little more, which means drivers make more money and Uber takes away a certain percentage from each ride.
(3)
The video says Uber has to pay the driver. Really!!!!!!? I don't think so. I'm a driver for Uber and Lyft and all I do is have my app downloaded, use my car and my fuel to give ride, charge a rightful fee for my service, and Uber takes away a percentage from my earnings. In a sense, uber is just an app that allows me to get in touch with the customers.
There is just so much misleading information in this video that only an Uber or Lyft driver would understand.
I don’t see how it is mathematically possible for them to be losing money.
Uber is a just History right now. Was Slowly dying here in IDN, getting crushed by Gojek & Grab.
Uber and Lyft are losing money because the Driver turn over rate is really high. It’s not that Drivers are asking for more, they keep manipulating the driver pay so the 80/20 split no longer exists, 60/40 and 50/50 is the new norm. Newer drivers are unaware of this and the Rideshare companies advertise to them in order to control future driver pay in the company’s favor not the driver.
Uber and Lyft charge approximately 60% less than the regular taxis. They are charging way below the market average. They also take between 45% to 47% of the driver's fare. I'am astonished that no one has even mentioned these important facts.
It's basically a competition between uber and lyft as to who runs out of money first. Then the winner will raise rates and expose itself to new competition. And the cycle continues....
That's ARMED ROBBERY: Broad Daylight No Mask No Gun....
In my home town Uber charges approximately what the taxi companies charge, especially for short rides.
I don't understand.... Your own car is already an on-demand vehicle....
Yea , Uber is loosing money. But they can pay 45million to CEO. Uber CEO Dara Khosrowshahi salary and total compensation: $45 million - Business Insider.Apr 11, 2019.
stop telling drivers you'll tip them in the app. and then don't! The people that leave tips don't even say they are going to.
Wait till amazon makes prime rides. Amazon will really be at the top top
In my area (England) . Alot of firms have deployed their own apps and card payment systems. And they are similarly priced.
Uber acts like everyone lives in the same City lol
Its interesting that uber is taking 45% of total fare in fees and charges out of drivers and they are still not profitable
Any company that has in its small print as uber has.
“ not safe for women or children “ is not a decent company in my book.
not asking for more we are asking for our pay back!
Uber/Lyft must be awesome during peak cold/flu season.
how?
My question is how are they not making money? They basically make an app and have 3 MILLION drivers driving for them, who don't work for them, who maintains all their own vehicles and pays all their car expenses like fuel and insurance. If they gave the driver 90% of the fare, they should STILL be making money. And their self driving tech is being funded by external sources!
Not to mention the amount of money they earn in mega cities like NY and San Francisco
small hint : bad management .-) = (bad cashflow + growth strategy)
Do drivers pay for advertising, insurance, rent for uber hq and buildings around the world where people go to sign up and car checkup, lawsuits, developers, etc etc.?
They should make uber pitch in shark tank and get rekt by kevin saying stuff like " you're not even making any MONEY !! your valuation is insane. however I'm willing to take a risk and offer you what you asked but i need $1 royalty in perpetuety per ride "
Uber seems to be a sinking ship
Drivers are not “now asking for more money”... it’s cause Uber keeps lowering drivers rates to the point where drivers have nothing to lose even if they turn on them... karma...
It is because our FAVORITE UBER DRIVER GOT FIRED THATS WHY!
They provide an app and process payments. 2 functions. They have to be extremely incompetent to not be profitable
Your mistake is the assumption that Uber is trying to build a business. They use the seed money to subsidize drivers to say, "See, increasing revenues! More seed money, please." Meanwhile, the top 5 executives siphon off $145 million per year in compensation, plus $10 million per year in security, home improvements, and travel. The executives at UBER are incredibly smart. They are excellent in shearing the foolish sheep. When the house of cards collapses they will each cry to the bank with $200 - $400 million. UBER is brilliant!!!
Im a driver for Uber for 3 years now with over 2,700 trips. When I first started, I would be making decent money from 15-25 an hour on full 8 hour shift.
I start today 12:30pm driving finish 1:30am. Drive 220 ml make 30 trips 265$ include tips. I feel no more energy for tomorrow.
Uber loses money because uber doesn't like to pay taxes.
Once they IPO, their founders get rich beyond their wildest dreams and all without paying a single cent of tax. Well done.
Cannot compare Uber to Amazon. Let’s remember Uber’s cannot raise fees due to competition and also cannot take a larger share of the revenue due to drivers pay.They are stuck in a unprofitable business. Uber’s whole idea was to get autonomous driving on the road, but even the founder was worried that Tesla could dominate the space with its technology. Tesla is at a better position . They have the most amount of data and the fact that they can turn existing Tesla into a ride sharing service without introducing a fleet of cars in every city , is like 5 years ahead of Uber.
Now Uber can always partner up with Tesla, but that would make Uber unprofitable after paying fees to the car owner and Tesla. Tesla can easily cut out Uber and go to market quicker.
Trust me there is no brand loyalty like there is for Amazon or a Tesla. People don’t mind using Lyft or any other ride sharing app, if it is cheaper and has the same features. I just don’t see a road to profitability for Uber in the next 5 years.
5 years is a very kind estimation. Don’t think they can ever become profitable in a no barriers to entry business. A new player will always pop up and undercut Uber. Said player will eventually get undercut by another player. List goes on and on.
Like you said, there is no brand loyalty because of the very nature of the business. It’s simply an all out price war! Only way I can see them getting a consistent flow of business is by partnering up with firms to replace the firms obligation to provide a vehicle to its executives. I believe Uber has already started doing so in NYC.
Uber makes profit off of diminishing the funds that would otherwise go to workers. Thats literally the only reason their prices are lower than taxis.
Uber + Tesla + Toyota
Worlds largest transport company .
10 x bigger than all others
Customer loyalty is nearly nonexistent. Only the best and/or cheapest services will survive. It's like computer builders in 1998.
Without drivers they have no company yet they want to stiff the cash cow.
How are they stiffing the cash cow? The video is about how they LOST 3 billion dollars this year, they need to be efficient with what money they do have.
Zach Without raising the cost of a ride and reducing driver pay and taking a percent of tips is robing from Pete to pay Paul
JustAGentleman can’t wait for you to climb into one of these non self cleaning POSs
plan your future accordingly folks, the deafening silence of mass automation is coming.
Uber and Lyft are a loser for the driver with costs draining too much of the profit.
Cost to own a car is around 300-400$ in my city. I live nearby a walgreens, and couple of grocery stores. I need car only in weekends and last month i spend 104$ on uber. Still i save 200-300$ last month.
They are horribly expensive. I thought the concept originally was that they charged less than taxis. Guess I was wrong.