Can someone explain to me how Uber isn't profitable?

[shawnhayes]

Originally Posted by allinon72

Folks, is it possible to have a discussion involving a little nuance? I never said I had a bad experience either. I said I never left an Uber feeling like I got a great value.

It is possible, but this is about why companies exist. If an Uber is preferable to a Taxi for ANY REASON AT ALL, a company like this will exist. The market will "morph" them into existence. If network TV and cable offerings SUCK, streaming services spring up into existence.

They don't have to offer ANYTHING better than a less painful experience. It doesn't have to be good. Just less bad.

Thus, you take ubers, rather than taxis.

No thanks for me. I'd rather take a Taxi. A regulated, known person with accountability to a boss with a known quantity. Doesn't make them better, just better for me.

But if you answer anything other than "screw Uber, I'm taking taxis from now on", uber will continue to be.

Shawn

[RickFLM4]

Originally Posted by Tyga11

So why do you think they don't charge enough?

The strongest sign they don’t charge enough is that they are losing money despite the scale they have achieved…. However, their entire existence started because they were able to undercut other options, like taxis and car services. They inherently were structured to be cheaper to gain market share.

They should make money if they can successfully transition to driverless cars at some point. The drivers are just a necessary, temporary evil for Uber.

Originally Posted by TheWatchGuy

they are only "losing" money just like all the big companies do everything they can to show losses to avoid paying taxes.

You are mixing up GAAP accounting and tax returns.

[Bingham]

Feeling the passion…good discussion.

I’ll say this, ride share has saved my life a few times. A dui is one thing…killing someone while doing it borders on unforgivable with all the options that exist out there.

Additionally, when u get older u appreciate convenience to/fro dinner, shows, games, airport and such. Feel like I’d have to concede that shit is super duper easy af these days.

B.

[Tyga11]

Originally Posted by allinon72

Folks, is it possible to have a discussion involving a little nuance? I never said I had a bad experience either. I said I never left an Uber feeling like I got a great value.

I don't understand how that's possible, with all due respect. An Uber is literally half the price of a traditional taxi if not cheaper.

What are you saying is a good value? These companies have to make money

[Tyga11]

Uber stock is currently up 12% and appears now to be profitable

[dradernh]

Originally Posted by Tyga11

Uber stock is currently up 12% and appears now to be profitable

In this context, what does "appears" mean; financials tend to be fairly black and white.

[kscarrol]

Net loss, unadjusted was $2.9 billion. This includes a $1.7 billion loss on valuation of investments. EBITDA, also adjusted was positive though the “adjustment” is excluding more than $500 million of G&A and R&D. It was negative on a GAAP basis…. Revenue, rides etc beat expectations but not profitable.

Edit: press release…. https://investor.uber.com/news-event...2/default.aspx

[RickFLM4]

Originally Posted by kscarrol

Net loss, unadjusted was $2.9 billion. This includes a $1.7 billion loss on valuation of investments. EBITDA, also adjusted was positive though the “adjustment” is excluding more than $500 million of G&A and R&D. It was negative on a GAAP basis…. Revenue, rides etc beat expectations but not profitable.

Edit: press release…. https://investor.uber.com/news-event...2/default.aspx

They added back a lot of stock-based comp (like a lot of tech companies and as allowed by the SEC), under the premise they are non-cash. However, this ignores the dilutive effect it creates or the cash required to buy back shares to avoid that dilutive effect. So “appears” is probably the right way to think about their profitability.

[kscarrol]

Originally Posted by RickFLM4

They added back a lot of stock-based comp (like a lot of tech companies and as allowed by the SEC), under the premise they are non-cash. However, this ignores the dilutive effect it creates or the cash required to buy back shares to avoid that dilutive effect. So “appears” is probably the right way to think about their profitability.

Yes I understand that, was an analyst for 15 years. Even adjusting for the $1.7 billion in valuation loss on investments and adding back the $470 million in stock based comp, they still reported a loss.

Edit: there are other metrics investors look at as well and Uber had a strong quarter looking at revenue, rider bookings etc, but profits this quarter are not the driver of the stock price today.

[jsf721]

Easy make a million and pay 1.5 million in salaries and float tbe debt on your books.