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Well let's put it this way. Once Uber and Lyft go public, they have to be profitable within 18-24 months or they are going to run out of money. Investors were willing to subsidize rides. Stockholders are not. If they are not profitable within this time, they can not issue more stock. They must borrow money and pay it back. (If they find someone that will lend it to them and if they can make the payments while they are still losing money)

If Uber is able to acquire large and dominent established transportation companies (like Mears) then it would be easy for Uber to activate their app to work with the vehicles operated by the companies they have acquired and control the pricing. If there aren't enough owned vehicles in those companies they can still use independent contractors (as they do now) to handle the overflow until they can get additional owned vehicles in place. This would be one path to profitability.
 

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How can uber not be making money ?

I still don't see that trying to compete or buy out mears should mean we get paid less than the entire country
That is really hard to understand, isn't it? They don't provide the cars, don't pay for the cars, all they pay for is some code programmers, some administrative help in small city offices, an umbrella insurance policy, and they lose money. It is really astounding to think of.
 

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Well let's put it this way. Once Uber and Lyft go public, they have to be profitable within 18-24 months or they are going to run out of money. Investors were willing to subsidize rides. Stockholders are not. If they are not profitable within this time, they can not issue more stock. They must borrow money and pay it back. (If they find someone that will lend it to them and if they can make the payments while they are still losing money)

If Uber is able to acquire large and dominent established transportation companies (like Mears) then it would be easy for Uber to activate their app to work with the vehicles operated by the companies they have acquired and control the pricing. If there aren't enough owned vehicles in those companies they can still use independent contractors (as they do now) to handle the overflow until they can get additional owned vehicles in place. This would be one path to profitability.
the problem with this logic is uber would have to have enough floating capital to purchase a company doing as astoundingly well as mears is currently. plus the very people that bought the 90% stake of mears were a venture capital company that WAS invested in uber but sold their portion out to newer adoptees such as Softbank. the current owners of mears bought it because it IS profitable and have no reason to sell something they can build on themselves, and even if they do Disney has a giant clause in the original buy contract that says if sold it has to be sold back into mears family hands. Disney is not going to let their 3rd party transportation network fall into unknown hands and ruin general quality of said network.
 

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[If they are not profitable within this time, they can not issue more stock. They must borrow money and pay it back. (If they find someone that will lend it to them and if they can make the payments while they are still losing money)

If Uber is able to acquire large and dominent established transportation companies (like Mears) then it would be easy for Uber to activate their app to work with the vehicles operated by the companies they have acquired and control the pricing. If there aren't enough owned vehicles in those companies they can still use independent contractors (as they do now) to handle the overflow until they can get additional owned vehicles in place. This would be one path to profitability.
[/QUOTE]
Well let's put it this way. Once Uber and Lyft go public, they have to be profitable within 18-24 months or they are going to run out of money. Investors were willing to subsidize rides. Stockholders are not. If they are not profitable within this time, they can not issue more stock. They must borrow money and pay it back. (If they find someone that will lend it to them and if they can make the payments while they are still losing money)

If Uber is able to acquire large and dominent established transportation companies (like Mears) then it would be easy for Uber to activate their app to work with the vehicles operated by the companies they have acquired and control the pricing. If there aren't enough owned vehicles in those companies they can still use independent contractors (as they do now) to handle the overflow until they can get additional owned vehicles in place. This would be one path to profitability.
"Stockholders are not. If they are not profitable within this time, they can not issue more stock..... "

Not true, they WILL print more paper to RAISE more needed cash.

Lyft & Uber will merge one day. Remember Sirius & XMradio?

Not sure if it will be Lyfted or Ultra or whatever...

After issuing more stock & burning money again, those two will combine their business...
 

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[If they are not profitable within this time, they can not issue more stock. They must borrow money and pay it back. (If they find someone that will lend it to them and if they can make the payments while they are still losing money)

If Uber is able to acquire large and dominent established transportation companies (like Mears) then it would be easy for Uber to activate their app to work with the vehicles operated by the companies they have acquired and control the pricing. If there aren't enough owned vehicles in those companies they can still use independent contractors (as they do now) to handle the overflow until they can get additional owned vehicles in place. This would be one path to profitability.
"Stockholders are not. If they are not profitable within this time, they can not issue more stock..... "

Not true, they WILL print more paper to RAISE more needed cash.

Lyft & Uber will merge one day. Remember Sirius & XMradio?

Not sure if it will be Lyfted or Ultra or whatever...

After issuing more stock & burning money again, those two will combine their business...
[/QUOTE]

I believe you will find there will be a stock dilution problem if additional stock is issued.
 

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Premium Member
Joined
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1,204 Posts
"Stockholders are not. If they are not profitable within this time, they can not issue more stock..... "

Not true, they WILL print more paper to RAISE more needed cash.

Lyft & Uber will merge one day. Remember Sirius & XMradio?

Not sure if it will be Lyfted or Ultra or whatever...

After issuing more stock & burning money again, those two will combine their business...
I believe you will find there will be a stock dilution problem if additional stock is issued.
[/QUOTE]

There is STOCK DILUTION anytime ADDITIONAL stock is issued.

The PROBLEM is UBER from the start, therefore we have this moronic board to sound off...

FYI:
- Companies issue new shares all the time
- Stocks get diluted all the time after new paper is issued
- Public companies go bankrupt all the time
- Mergers happen all the time
 

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I believe you will find there will be a stock dilution problem if additional stock is issued.
There is STOCK DILUTION anytime ADDITIONAL stock is issued.

The PROBLEM is UBER from the start, therefore we have this moronic board to sound off...

FYI:
- Companies issue new shares all the time
- Stocks get diluted all the time after new paper is issued
- Public companies go bankrupt all the time
- Mergers happen all the time
[/QUOTE]

How much additional stock is Lyft authorized to issue?
 

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most big cities are not overflowing with immigrants (Orlando is) and have a majority of working people that understand 53 cents a mile is not profitable, so the rates are somewhat higher but even at these rates people are not willing to waste their time and car so Uber throws bonuses left and right (subsidies). In some cases Uber makes nothing from rides but still has the overhead to pay
 

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So if it's not profitable for driver's how are there just so many Uber's? I guess they rake in the tip's because it doesn't make sense. These cars don't last forever. Maybe Toyota's just last longer then I think they do? Do they have a wife making more money funding an unprofitable venture? How can this go on!!!!?????
 

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1,366 Posts
So if it's not profitable for driver's how are there just so many Uber's?...
The traditional scenario is that many of these drivers send their younger, more productive family members abroad. These assiduous relatives then remit funds back home from the disposable fraction of income they earn in profitable industries in such far flung locales as Haiti or Venezuela.
 
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