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Originally Posted by Dan02
agreed fantastic oppourtunity for growth but IMO it's also going to be a high competition low profit market as the market matures and competitors come online and taxi commisions start to adapt to preserve market share. It's also a very unregulated space at the moment which will probably change at it attracts more and more attention, increasing costs and putting downward pressure on profits.
They claim their revenue will increase because their 5 mature markets generate most of their revenue but those mature markets also happen to be some of the best setups for them. How many Cedar Rapids(one of their 150ish served cities) will it take to equal the profits of one NYC?? 1000??
What happens if NYC or London ban the service? instant 10 billion drop in valuation?
How high to these latest investors think Uber can go if they put their money in at a 40 billion valuation?
IMO tons of questions left to the be answered and IMO the CEO is one of the least of them even if he is a ######, to channel my inner kevin o'leary, money doesn't care.
I'd be interested to see what if any money they made off that $2 billion in net revenue, wouldn't be suprised if it's 0.
I forsee the amount they are going to spend on legal fees and lobbying as they spread is going to be astronomical. they probably be better off just sticking to cities with high urban populations rather then trying to reach every little city as well. Plus the cost of customer acquisition.
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I'm guessing they don't actual turn much of a profit either, but as the first to the line, they have a great chance of becoming very successful.
I'm actually surprised by some of the negative comments in this thread. Sure, their CEO is a dirtbag, and some of their higher ups are as well, but it is hard to believe that all their employees are. If they get proper guidance from their investors, they could turn around their culture. Money talks in bot ways and you'd have to think their investors will pressure the CEO and others to change.
Makes the success of Google even more incredible considering how successful they were, and how they managed to do all of that without coming across as dbags.