VCs are scared when they should be greedy

Re:VCs are scared when they should be greedy by ceeplusplus on Wednesday July 20, 2022 @05:45PM (#32172818)

Uber's net GAAP loss, excluding losses from investments in DiDi and other companies, is around 300m last quarter [1] which is a ~1% loss on their gross bookings. Most of that is stock based comp. Their FCF loss was only 47m last quarter.

I know HN likes to hate on Uber and other gig apps but a 1% margin is something they can easily make up given their stated take rate on mobility and delivery is around 20%.

> So what market is Uber not established in

If you follow their earnings calls (or that of DoorDash as well), advertising is a huge growing market for these companies. My guess is they take on an airline business model: zero to slim margins on the core offerings, but huge money on advertising and ancillary sources of revenue (for airlines, this is credit card points).

[1] https://investor.uber.com/news-events/news/press-release-det...

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Re:VCs are scared when they should be greedy by aetherson on Wednesday July 20, 2022 @09:52PM (#32174852)

I think we should split the difference.

Yes, Uber is close to break-even and they aren't going to just disappear. But there's still a big gap for them to close between "breaking even" and "profitable enough to justify a $50B valuation."

There's plenty of room for a moderate view in which Uber survives as a business but their investors are extremely unhappy.

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Re:VCs are scared when they should be greedy by closewith on Wednesday July 20, 2022 @07:28PM (#32173778)

> (for airlines, this is credit card points)

In the United States, maybe, the only market where credit card points are meaningful?

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