Apoint often overlooked in Uber media coverage is that in 12 years of operation the ride-hailing app is yet to produce a dollar of positive cash flow. As of the end of 2021, Uber’s ongoing car and delivery services had produced GAAP net losses of $31bn.
The other too frequently untold truth is that rather than being a beacon of transportation progress, Uber is actually a substantially less efficient, higher-cost producer of urban car services than the traditional taxi operators it has driven out of business. Uber’s business model has never had any ability to profitably produce very large-scale operations at prices the market is willing to pay.
3 thoughts on “Uber’s economic reality”
Someone somewhere must be raking off what profit there is, or it would have gone bust before now. Maybe it’s a deliberate ‘tax loss’?
It’s a business model that baffles me, give away your service to bankrupt the worldwide competition, but before that succeeds (even if it would) jack up your fares whilst paying the staff a pittance.
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