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by MR4D 2911 days ago
Kalanick built an incredible idea. His company still loses billions of dollars per year.

I've listed a ton of references, but my favorite quote is from [3] :

     The firm actually lost nearly $1.1 billion (GAAP net income) against just $2.22 billion in net revenue in the fourth quarter.
     
     It works out to a -49 percent GAAP net margin.
Also, the graphs on [5] are pretty damning.

So in my opinion, the idea is great (actually, truly freaking fantastic to me), but the company is burning through cash at an incredible (and often growing) rate.

To me, that is not the making of an incredible company.

[0] https://www.bloomberg.com/news/articles/2016-08-25/uber-lose...

[1] https://www.bloomberg.com/news/articles/2018-03-06/uber-spen...

[2] https://www.cnbc.com/2018/02/13/ubers-loss-jumped-61-percent...

[3] https://news.crunchbase.com/news/understanding-uber-loses-mo...

[4] http://knowledge.wharton.upenn.edu/article/growth-vs-profits...

[5] https://www.forbes.com/sites/lensherman/2017/12/14/why-cant-...

1 comments

How much is going to CapEx? I thought they burnt at such a high rate because of their autonomous R&D.