You are correct about Uber not being profitable. They’re burning cash quickly. And if you look at market performance, they’re not where they expected to be. Furthermore, they’re fighting things like employee unionization (See California) which will increase their cost.

And Uber is fundamentally different. It’s not seasonal, and the costs fall mainly on drivers rather than the company.

Investors are hopeful on Uber, but I bet if a scooter company tried to go public right now, it would get eaten alive.