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by danielmarkbruce
1890 days ago
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Uber is a public company. They do over 50% gross margins. One may reasonably suggest some of their marketing expense should be in the COGS, but even if you take all of it, they are still GM positive. Similar story for Lyft (also public). These stories persist, of companies deliberately running their companies so as to give away a $1 for $0.80 or whatever - but with very few exceptions it's a bs story. |
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I'm spinning it as positive because I'm attempting to break out their fixed and variable costs. If one looks through the line items and imagines themself as CEO, there are items which can easily cut and/or don't need to climb as revenue climbs. EG, their R&D is probably too high and doesn't need to double for their revenue to double. By breaking out their costs one can figure if they are likely to be "perpetual money losers" or just "currently money losers", which is the question at hand.
They are valued in public markets at over $100 billion. Usually the public markets do a reasonable job at getting a reasonable number for a company's value. Thinking about Uber's cost structure in some depth is how folks have arrived at that number.