snopes.com  

Go Back   snopes.com > Non-UL Chat > Business Bytes

Reply
 
Thread Tools Display Modes
  #1  
Old 28 February 2017, 10:43 PM
DrRocket's Avatar
DrRocket DrRocket is offline
 
Join Date: 03 February 2006
Location: Rosemount, MN
Posts: 1,990
Read This! Uber Is Doomed

If there is one quote that sums up the ethos of Uber, it might be this cut from the companyís firebrand CEO Travis Kalanick: ďStand by your principles and be comfortable with confrontation. So few people are, so when the people with the red tape come, it becomes a negotiation.Ē But after a month marked by one disaster after another, itís hard to see how Uberís defiant, confrontational attitude hasnít blown up in its face. And those disasters mask one key, critical issue: Uber is doomed because it canít actually make money.

http://jalopnik.com/uber-is-doomed-1792634203
Reply With Quote
  #2  
Old 01 March 2017, 08:33 PM
Esprise Me's Avatar
Esprise Me Esprise Me is offline
 
Join Date: 02 October 2005
Location: Los Angeles, CA
Posts: 6,356
Default

Seven years without turning a profit? Wow. Is Lyft doing better? I was one of the many who switched recently; most drivers I've encountered who drove for both preferred Lyft, among a million other reasons.
Reply With Quote
  #3  
Old 01 March 2017, 08:40 PM
ASL's Avatar
ASL ASL is offline
 
Join Date: 04 July 2003
Location: Norfolk, VA
Posts: 4,755
Default

Has Facebook turned a profit yet?
Reply With Quote
  #4  
Old 01 March 2017, 08:48 PM
Errata's Avatar
Errata Errata is offline
 
Join Date: 02 August 2005
Location: Santa Barbara, CA
Posts: 12,867
Default

It depends on how much they lose, how quickly. If they're still dying a fast death after all this time, then they probably are doomed, but if they're dying a slow death, then they could survive long enough for their long term strategy to eventually work out for them. Most of these web or app startups ultimately fail, but almost all of them start out unprofitable, and a few turn it around in a big enough way to keep people investing in all the failures.

I think Lyft seems to be more invested in their drivers, while Uber seems to see them more as a means to an end which doesn't actually involve drivers. That could work out well for Lyft in the short term and then rapidly become irrelevant. Uber got into the game very early and is fighting to maintain market share rather than profits right now. If in the future they manage to maintain solvency and market share, then the profits may come in a big way when they don't have to pay drivers anymore.

There will be people making big profits on fleets of self-driving taxis, which is Uber's long term goal, and the reason that some investors value them so highly. The question is whether Uber or Lyft will still be major players that people use for those services or not. And I doubt anyone knows the definitive answer to that yet.
Reply With Quote
  #5  
Old 01 March 2017, 08:48 PM
dfresh dfresh is offline
 
Join Date: 11 November 2005
Location: Oxford, PA
Posts: 3,561
Default

Quote:
Originally Posted by ASL View Post
Has Facebook turned a profit yet?
Yeah, about 2.4 billion last year.
Reply With Quote
  #6  
Old 01 March 2017, 08:54 PM
jimmy101_again jimmy101_again is offline
 
Join Date: 29 December 2005
Location: Greenwood, IN
Posts: 6,338
Default

Quote:
Originally Posted by ASL View Post
Has Facebook turned a profit yet?
Depends on what you mean by "profit". As a company yes,
http://www.nasdaq.com/symbol/fb/fina...come-statement
for Zuckerberg... a really really big time yes.
http://www.businessinsider.com/guess...y-takes-2011-3
Reply With Quote
  #7  
Old 02 March 2017, 01:52 AM
DrRocket's Avatar
DrRocket DrRocket is offline
 
Join Date: 03 February 2006
Location: Rosemount, MN
Posts: 1,990
Tantrum Uber chief's outburst adds to company's woes

Uber Chief Executive Travis Kalanick has apologized, saying he admits he needs "leadership help" after a video showed him berating one of the company's drivers.


http://www.startribune.com/uber-chie...oes/415136314/
Reply With Quote
  #8  
Old 02 March 2017, 01:55 AM
ASL's Avatar
ASL ASL is offline
 
Join Date: 04 July 2003
Location: Norfolk, VA
Posts: 4,755
Default

Dear Miss Cross, I would like to take this opportunity to formally apologize for the events of the night of the 23rd. I am not accustomed to drinking alcohol.
Reply With Quote
  #9  
Old 02 March 2017, 09:26 AM
Richard W's Avatar
Richard W Richard W is offline
 
Join Date: 19 February 2000
Location: High Wycombe, UK
Posts: 24,734
Default

Quote:
Originally Posted by Esprise Me View Post
Seven years without turning a profit?
Amazon didn't make a profit for its first seven years, either. It just had a vast amount of venture capital behind it, which it could use to subsidise itself while driving competitors out of business without needing to actually do the stuff other retailers needed such as make a profit. (Or pay taxes etc. etc...) I've always been rather sceptical of these things since knowing that. Now that Amazon is making a profit - as it had to eventually - it seems that some of its competitors are managing to claw back some ground and break the attempted monopoly, at least in retailing. It's still got its platform to skim a cut off things, and other services like AWS.

On the other hand, I thought the article did a good job of explaining why, despite that, Uber wasn't like Amazon and wasn't going to end up turning a profit. Glad to see that at least part of that is the unrealistic nature of its self-driving cars plan.

But it's astonishing to read this sort of analysis, and compare it with all the rhetoric about "disruptive businesses" being the future, and how all that stuff is better for everybody despite obviously making conditions worse for everybody, and how it's a simple commercial reality and if you don't like it you're some sort of naive Luddite communist. And then to find out that it's all a bit of a sham and only works because they've massive amounts of cash that they can use to undercut everybody else and drive them out of business without actually having a valid business model. I suppose it's nice of all these venture capitalists to pay people's taxi fares for a few years, though. (Not that I've ever used Uber).

I still don't get how the sale of personal information to advertisers can possibly drive an economy and be worth that many billions either, but I seem to be the only person who doesn't...
Reply With Quote
  #10  
Old 02 March 2017, 12:52 PM
gopher's Avatar
gopher gopher is offline
 
Join Date: 06 January 2005
Location: Sunderland, Northumbria, UK
Posts: 2,080
Default

Quote:
Originally Posted by Richard W View Post
I still don't get how the sale of personal information to advertisers can possibly drive an economy and be worth that many billions either, but I seem to be the only person who doesn't...
I guess we should be grateful it does, PAYG internet would be miserable.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Bachmann compares Obama to the co-pilot of doomed Germanwings flight TallGeekyGirl Soapbox Derby 5 04 April 2015 05:52 AM
Princeton Alum Tells Female Students They're Doomed Unless They Find a Prince Avril Soapbox Derby 44 12 December 2014 02:16 AM
Need a snuggle? Uber delivers kittens on demand A Turtle Named Mack Business Bytes 1 29 October 2014 10:00 PM
'Lost' photos aired on TV as doomed flight Graham2001 Sightings 0 22 June 2009 11:23 PM
Doomed number nine haunted Benazir's life snopes Spook Central 7 01 January 2008 09:38 PM


All times are GMT. The time now is 05:20 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2017, vBulletin Solutions, Inc.