| They might be cash flow positive but would they have enough to pay back all the leveraged debt they've taken on? If they pulled out of a bunch of markets (why is Uber wasting its time in places like Japan where taxis are basically fine?), then they could no longer justify their valuation. Their prices are going to go pretty high up, meaning they'll only survive in places where taxis are super awful (so, basically the US). All that stock they've handed out would start dropping like a rock in the private valuations of the institutional holders, I bet some loan conditions will trigger, and they're going to suffer quite a bit. Not to mention the talent exodus. It's like austerity. If your company is suffering due to a lack of growth to meet ambitions, is cutting costs going to make growth go faster or slower? That said, I think Uber will figure something out, even if it ends up not hitting its goals. |