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Discussion Starter · #1 ·
'If there is one quote that sums up the ethos of Uber, it might be this cut from the company's firebrand CEO Travis Kalanick: "Stand 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." But after a month marked by one disaster after another, it's hard to see how Uber's defiant, confrontational attitude hasn't blown up in its face. And those disasters mask one key, critical issue: Uber is doomed because it can't actually make money.

After a discombobulated 2016, in which Uber burned through more than $US2 ($3) billion, amid findings that rider fares only cover roughly 40 per cent of a ride, with the remainder subsidized by venture capitalists, it's hard to imagine Kalanick could take the company public at its stunning current valuation of nearly $US70 ($91) billion.

And now, in the past few weeks alone, Uber has been accused of having a workplace that fosters a culture of misogyny, accused of stealing from Google the blueprint of a successful self-driving system, and has lost 200,000 customers over ties to President Donald Trump and how it responded to a taxi driver boycott.

Yet even when those factors are removed, it's becoming more evident that Uber will collapse on its own. Barring a drastic shift in the company's business - an implausible rollout of self-driving car fleets across the U.S., an increase of fares by three-fold, or a complete monopolization of the taxi and ride-hailing markets - Uber's lifeline is shrinking. Its business model could collapse if one court case, and there are many, goes against it. Or perhaps more pressing, if it simply runs out of cash.'

https://www.gizmodo.com.au/2017/02/uber-is-doomed/

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The Contractor Problem
One of the biggest issues that has left Uber's business model hanging in the balance is its resistance to classifying its drivers - there are reportedly 600,000 in the U.S. - as employees, not contractors. If Uber is a house of cards, this is a key part of the foundation that, once removed, would demolish the structure.'

hmmm...

Great piece, all should read it...
 

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That's not the only article out there. The best one I read was on nakedcapitalist website.

I have maintained for a long time now that uber will not exist in its current, if at all. In the next 3-5 years. Quote me on it in 5 years time :+)
 

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Discussion Starter · #4 ·
That's not the only article out there. The best one I read was on nakedcapitalist website.

I have maintained for a long time now that uber will not exist in its current, if at all. In the next 3-5 years. Quote me on it in 5 years time :+)
Have to agree UberX.illegal?

It's actually looking more and more like a ponzi scheme...
 

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'If there is one quote that sums up the ethos of Uber, it might be this cut from the company's firebrand CEO Travis Kalanick: "Stand 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." But after a month marked by one disaster after another, it's hard to see how Uber's defiant, confrontational attitude hasn't blown up in its face. And those disasters mask one key, critical issue: Uber is doomed because it can't actually make money.

After a discombobulated 2016, in which Uber burned through more than $US2 ($3) billion, amid findings that rider fares only cover roughly 40 per cent of a ride, with the remainder subsidized by venture capitalists, it's hard to imagine Kalanick could take the company public at its stunning current valuation of nearly $US70 ($91) billion.

And now, in the past few weeks alone, Uber has been accused of having a workplace that fosters a culture of misogyny, accused of stealing from Google the blueprint of a successful self-driving system, and has lost 200,000 customers over ties to President Donald Trump and how it responded to a taxi driver boycott.

Yet even when those factors are removed, it's becoming more evident that Uber will collapse on its own. Barring a drastic shift in the company's business - an implausible rollout of self-driving car fleets across the U.S., an increase of fares by three-fold, or a complete monopolization of the taxi and ride-hailing markets - Uber's lifeline is shrinking. Its business model could collapse if one court case, and there are many, goes against it. Or perhaps more pressing, if it simply runs out of cash.'

https://www.gizmodo.com.au/2017/02/uber-is-doomed/

'
The Contractor Problem
One of the biggest issues that has left Uber's business model hanging in the balance is its resistance to classifying its drivers - there are reportedly 600,000 in the U.S. - as employees, not contractors. If Uber is a house of cards, this is a key part of the foundation that, once removed, would demolish the structure.'

hmmm...

Great piece, all should read it...
Uber burning through cash? Or the drivers burning through cash?
Travis is a clown I watched his interview in the states a while back and he was hopeless
Companies like Tesla will not go near him
They need to change their CEO, and the way they do business because he will drag them into the abyss with him
If the economy was good most drivers would leave tomorrow
 

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Uber is a driver Ponzi scheme. They rely on signing up many drivers to replace the ones that have found out through completing a tax return that they are losing money driving for Uber. The money looks good but do not spend it you will need it for tyres, servicing and repairs. You do not know what is going to happen in the future but it will cost.
 

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Discussion Starter · #8 ·
Uber is a driver Ponzi scheme. They rely on signing up many drivers to replace the ones that have found out through completing a tax return that they are losing money driving for Uber. The money looks good but do not spend it you will need it for tyres, servicing and repairs. You do not know what is going to happen in the future but it will cost.
You're right, but I was actually referring to Uber running up massive debts and churning out new investors like they do drive partners, to keep it bouncing along...
 

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Yes, I think Kalanick's model is flawed. Expanding too fast, fighting battles on multiple fronts, a culture of dominance and undercutting competitors, robbing peter to pay paul. It could still work though with a few adjustments like concentrating on providing a service that benefits the whole body of the company, Uber(the brain) and drivers(the backbone) and pax(the fuel). At the moment riders are being subsidised 60% of their fare through investors and drive partners. How long can this go on????????????????????????????????????????????/
 

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It's not pretty...
The only thing saving Uber at the moment is they have " Cash Flow " but not sure how much dept they are carrying, so if their investors start to get "cold feet" we may get that funny little note "can't pay you this week but keep driving while we calculate your future earnings"
 

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Discussion Starter · #13 ·
The only thing saving Uber at the moment is they have " Cash Flow " but not sure how much dept they are carrying, so if their investors start to get "cold feet" we may get that funny little note "can't pay you this week but keep driving while we calculate your future earnings"
For Ubereats they take 30% cars, 35% bikes. Thieves...
 

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Uber losing 3 billion/yr when they take 25% of every fare for nothing ! Pull the other leg will you. This red herring is designed for one thing only ... to keep the tax man at bay. Uber will never go Public as they then will have to pay tax and Kalanick cannot bare to see that happen.
 

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Discussion Starter · #15 ·
Uber losing 3 billion/yr when they take 25% of every fare for nothing ! Pull the other leg will you. This red herring is designed for one thing only ... to keep the tax man at bay. Uber will never go Public as they then will have to pay tax and Kalanick cannot bare to see that happen.
not quite following you. You understand Uber would be profiting if it concentrated on it's core business. Drivers would be better off as well...
pull the other leg?
 
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