Uber Drivers Forum banner
1 - 11 of 11 Posts

·
Registered
Joined
·
1,460 Posts
Discussion Starter · #1 ·
http://www.businessinsider.com/uber-leaked-finances-accounts-revenues-profits-2017-2

Saw this article this morning, and just had to laugh at the following line:

"Uber's costs and expenses vastly outweigh its revenues. Uber is cheap because the company is heavily subsidising each trip. "

What the heck are they heavily subsidizing. It has been proven time and time again that they take more than 20% or 25% from the fare. Numbers can always be manipulated to spin it however they want.
 

·
Premium Member
Joined
·
3,224 Posts
I worked for a multi billion dollar corporation for over 30 years. Like Mr Cheetos they paid no federal taxes. I had a 500K tax credit coming for purchasing natural gas buses and they could not get the money because it was only good as a credit on taxes owed not a refund so they never were able to get it and then a few years later they downsized me.
 

·
Premium Member
Joined
·
2,385 Posts
http://www.businessinsider.com/uber-leaked-finances-accounts-revenues-profits-2017-2

Saw this article this morning, and just had to laugh at the following line:

"Uber's costs and expenses vastly outweigh its revenues. Uber is cheap because the company is heavily subsidising each trip. "

What the heck are they heavily subsidizing. It has been proven time and time again that they take more than 20% or 25% from the fare. Numbers can always be manipulated to spin it however they want.
And what about this line:

"Net revenues - the cut that Uber keeps from each trip fare - also continue to grow healthily, reaching $1.7 billion in Q4 2016"

So they are keeping about 31.5% while advertising only 25% tops!
 

·
Premium Member
Joined
·
5,480 Posts
And what about this line:

"Net revenues - the cut that Uber keeps from each trip fare - also continue to grow healthily, reaching $1.7 billion in Q4 2016"

So they are keeping about 31.5% while advertising only 25% tops!
Don't forget the booking fees. The percentage is much higher on minimum fare or close to minimum fare trips, which most trips are. Also their haul is 28% and up on anything besides UberX.
 

·
Registered
Joined
·
1,460 Posts
Discussion Starter · #5 ·
Yeah all the numbers are just way out of whack. I love the fact that the raw numbers for 2015 show 83% to drivers in quarter 2. How in the world is that ever possible? Even with all the 20% drivers, nobody has ever claimed they receive even close to 80% payout, with the booking fee always going to Uber. The article is just filled with information that is incorrect. They obviously never talked to drivers.
 

·
Premium Member
Joined
·
4,826 Posts
The past 2 weeks Uber has been giving me 1.8x - 2.0x boost. Passengers get in and they are paying regular fare. They have no idea their ride is being subsidized by Uber. When I drive near the geo fence I get regular fare pings that I never accept. I would never be driving them if it wasn't for the boost or surge. As long as Uber insists on making fares as cheap as public transportation they will never be profitable IMO.....

Yeah all the numbers are just way out of whack. I love the fact that the raw numbers for 2015 show 83% to drivers in quarter 2. How in the world is that ever possible? Even with all the 20% drivers, nobody has ever claimed they receive even close to 80% payout, with the booking fee always going to Uber. The article is just filled with information that is incorrect. They obviously never talked to drivers.
You aren't taking into account boost and promo incentives to the drivers. That's what skews the numbers..
 

·
Registered
Joined
·
1,916 Posts
The money they have raised from venture capital is around 13 billion.
Driver referrals, guarantees, boosts, free 20$ ride, rider reimbursement when they complain about a ride or a cancel fee. I for example had a problematic ride and had a fare taken away. I argued and got it reinstated. I'm sure they didn't charge the rider.
They subsidized the China market to the tune of over a billion dollars last year to gain share. That's subsidy
 

·
Registered
Joined
·
570 Posts
http://www.businessinsider.com/uber-leaked-finances-accounts-revenues-profits-2017-2

Saw this article this morning, and just had to laugh at the following line:

"Uber's costs and expenses vastly outweigh its revenues. Uber is cheap because the company is heavily subsidising each trip. "

What the heck are they heavily subsidizing. It has been proven time and time again that they take more than 20% or 25% from the fare. Numbers can always be manipulated to spin it however they want.
They're subsidizing from the rider end. They keep giving out free rides and they continuously refund people's money from a ride for no reason.
 

·
Premium Member
Joined
·
4,826 Posts
Anytime I have had a ride adjusted in the passengers favor I have always been able to get my money back if I found out in time. They only give you Forty-Eight Hours to correct. I agree that money is coming from Uber because I also believe they do not recharge the passenger
 

·
Registered
Joined
·
1,460 Posts
Discussion Starter · #11 ·
You aren't taking into account boost and promo incentives to the drivers. That's what skews the numbers..
They're subsidizing from the rider end. They keep giving out free rides and they continuously refund people's money from a ride for no reason.
I hear what you guys are saying. Even some boosts they break even on the trip, so I get it and others they are losing money for sure. However, that is their decision otherwise they wouldn't have drivers in the area. If they raised rates they wouldn't have to worry about ridership. Plus we know that there are some passengers paying surge, but the driver gets regular pay, so that should make up for some of that difference. It is funny how over time Uber's percentage has definitely increased, which means they probably are not shelling out as much for free rides and adjustments as they once did.
 
1 - 11 of 11 Posts
Top