In both cases, they are so ubiquitous that they aren't really after new users, just increased engagement/usage. And I'd bet Uber's per-user usage growth exceeds Facebook's right now.
It would be a lot higher percentage if I didn't just use a pre-arranged private car for my home airport. (I live far enough outside the city that Ubers for early-morning pickups, especially for an hour drive into the city, are very thin on the ground.) It would probably also be higher if fewer cities I traveled to had decent transit in from the airports.
But, otherwise, I have pretty much zero reason to use Uber/Lyft/taxis day-to-day.
I spend a few thousand dollars a year on airport transportation but very little of that goes to Uber.
Typically, I can expense rides to and from airport if I'm traveling for work, so I can be more generous and order a better car.
Dunno why the receipts are ~500kb though.
The argument with FB is diff, FB relies on network effects and a social graph, literally winner take all, you could argue that exists in localized taxi markets, but again, I think of Warren Buffet and "the cirlce of competence". How many investors are reading CH Robinsons annual reports and comparing said numbers? Just some thoughts. Remember, interest rates and capital markets the way they are today, may not be the way they are tomorrow. - WB
My appreciation from Uber comes from my Travels. While Uber faces significant competition in US with lyft for rides, DoorDash, caviar, etc for food delivery, Convoy and tons of other companies for Freight, they are a global company.
I use the same Uber app for US, Australia, Dubai, Kenya, India. In a whole bunch of countries they’ve bought out the competition e.g Careem in Dubai and they’re operating like a monopoly. Multiple brands but Uber still owns the big pie.
They’re running operations at a massive scale. The operational costs bring customer support, software ops. Looks like a software company that way. They don’t own cars and drivers are contractors (sure changing in California) but remember Uber is a global company. A decent chunk of their revenue is non-US.
They may be negative in acquiring new drivers and customers but for their active base, they make a decent profit.
Freight right now is a very paper/pen based inefficient business with a bunch of middlemen. Uber is making that efficient just as they did to Taxis.
Let’s see how this all plays out but I am somewhat bullish on them.
What I'm reading is I can order an Uber to two blocks away and say to the driver that I actually want to go to the other side of town, Uber says it's 50$ from which he'll get 40$, so how about I pay him 45$ in cash. We both win.
It’s still good to see that 20% number on their earnings report.
Didn’t realize Airports would be such big business.
Overall it seems Uber is growing >20% in rides, trips and active users.
I remember when Facebook was valued at 100B without profits and I thought it was absurd. Now they’re a money raining machine with 500B valuation.
Year 2019
Total trips: 6.9 Billion Total bookings: $65 Billion Net revenue: $12.8 Billion
So they’re taking ~20% cut from every trip.
If Uber can reduce burn and be profitable this year, I’m willing to bet $1000, they’ll be >100B by end of 2021.
Uber eats and freight grew 70%. Wow!
Overall I think if Uber can maintain their market dominance for another decade or so while self driving cars really become viable and people trust them, I can see Uber easily being as large as Facebook.