(25 days ago)
This lawsuit sheds new light on a problem Uber has, a problem that transcends all other problems, of which Uber has plenty: In 2015, Uber lost $2.2 billion; in 2016, the losses are said to have jumped to $3 billion.
Net revenue – the amount left over after it pays its drivers – was expected to exceed $5.5 billion for 2016. In the third quarter alone, it lost $800 million on $1.7 billion in net revenue.
But it’s even worse; these figures are based on sources cited by Bloomberg in late December:
Those are rough figures that may underestimate how much money Uber is losing and don’t include interest, taxes or stock-based compensation.
At Uber, the problem is a quirk in the equation: The more revenues grow, the more money it loses. Something is out of whack on the expense side. Or the business model doesn’t work.
Hardly surprising. My experience as a user:
In London: the service was good – preferable to taxis
In New York: it was inconsistent – taxis were better
In Paris: it was inconsistent – but so were the taxis
In Toronto: it was good - preferable to taxis
In Hong Kong: abysmal - taxis, buses, minibuses, MTR, ferry and the 86 year old with his rickshaw at the Peak have all proven themselves to be more reliable every single time. I'll never even consider using them again.
Uber 's end goal is to have driverless cars everywhere....