How is Uber failing?

[TheDude1]

So we keep hearing about Uber being in such dire financial straits... but how is that possible? It seems to be EVERYWHERE, it’s a service that is definitely needed, and I cannot imagine the operating costs are very high... so wtf?

Finance people? Help me out here.

 

[ticket2ride04]

Uber is playing the long game right now and hoping automation is in their future. They also hope to capitalize in food service deliveries. They pay their drivers a substantial amount of their proceeds and take very little. Then there is a ton of money to pay for the tech they use. Traditional cabs don’t need a giant data center to support their services.

At some point Uber will have to raise prices by a bit and hope they have an inelastic product on their hands.

 

[Random UK Fan]

 

[JimboBBN]

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Cliffs? At work.

The market has become saturated. Uber isn’t the only company that can drive you around if you’re shit faced like they used to be. That would be my guess. That or they just don’t charge enough to pay for everything.

 

[topps coach]

Was a Uber driver when it first came out.Uber rates were already about 40 percent cheaper than cabs.They then cut rates by another 45 percent.You can only run a loss leader product for so long before it shows up on bottom line