# Oracle Founder Larry Ellison says Uber's business model is ‘Almost Worthless’



## XPG (Oct 4, 2017)

*'An app my cat could have written': Larry Ellison reportedly says Uber's business model is 'almost worthless'*
Business Insider 20 SEP 2019 by Graham Rapier

*Larry Ellison is said to be far less bullish than Wall Street when it comes to Uber.*
*The Oracle founder trashed Uber's business model at a private San Francisco event this week, according to Barron's.*
*"They have nothing," he reportedly said of the ride-hailing giant. "No technology. And no loyalty."*
Oracle founder and executive chairman Larry Ellison argued that while Uber raises capital to spend on gaining market share from rival Lyft (LYFT), the business they secure doesn't necessarily stay with the company.

Barron's reported Friday that the 75-year-old hosted a small cohort of entrepreneurs at his home in a posh neighborhood of San Francisco, where he spent an hour answering questions about topics as varied as the gig economy, WeWork, and Tesla.

*Uber, despite a $57.5 billion market capitalization following its May IPO, is "almost worthless," Ellison reportedly said, adding that the company didn't own cars or control its drivers and had an "app my cat could have written."*

Ellison said losing money to gain market share is "idiotic" if customers won't stay with the firm. "They have nothing," he said. "No technology. And no loyalty." Ellison, who sits on the board of Tesla (TSLA), and considers Elon Musk a close friend, also asserted that Tesla could roll out a ride-sharing service with autonomously driven cars at prices two-thirds below what Uber charges, while also ensuring people get to their destinations safely.

https://www.barrons.com/articles/or...-uber-and-wework-almost-worthless-51568924122


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## Cold Fusion (Aug 28, 2019)

Larry's got a smart Kat.
⚠His company is Tanking, ⚠
I guess he's on the warpath
Maybe he should make his Kat CEO of oracle✔
And Tend His OWN Garden

https://www.marketwatch.com/story/o...n-a-year-amid-fears-of-slow-growth-2019-09-12
https://www.barrons.com/articles/or...because-revenue-is-barely-growing-51568300740
https://www.fool.com/investing/2019/09/16/5-simple-reasons-to-stay-away-from-oracle.aspx


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## 1.5xorbust (Nov 22, 2017)

Seems to be an accurate assessment of Uber.


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## nosurgenodrive (May 13, 2019)

You can't roll out autonomous vehicles at 2/3 the price of Uber. That would be .30 a mile for a fully electric vehicle. He just wants Tesla to be the rideshare company of the future.


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## Bob Reynolds (Dec 20, 2014)

He's right about Uber.

He's wrong about Tesla.


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## XPG (Oct 4, 2017)

He's right about the cat.


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## Brooklyn (Jul 29, 2014)

He’s right about no loyalty. 

There’s no incentive to stick with one app.


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## TPAMB (Feb 13, 2019)

XPG said:


> He's right about the cat.
> View attachment 358523


That's funny as shit!


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## uberdriverfornow (Jan 10, 2016)

lol "doesn't control the drivers" 

funniest thing I've heard all week


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## GoldenGoji (Apr 30, 2018)

Uber can always go into the cocaine business, they seem to have lots of it.


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## nouberipo (Jul 24, 2018)

Brooklyn said:


> He's right about no loyalty.
> 
> There's no incentive to stick with one app.


Drivers and paxoles



GoldenGoji said:


> Uber can always go into the cocaine business, they seem to have lots of it.


Since they see themselves above the law with everything else wouldn't this be a viable revenue stream for them? They obviously have the money and connections to disregard laws and regulations that were basically tailor made for companies such as Uber and Lyft.


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## Lee239 (Mar 24, 2017)

XPG said:


> Oracle founder and executive chairman Larry Ellison argued that while Uber raises capital to spend on gaining market share from rival Lyft (LYFT), the business they secure doesn't necessarily stay with the company. He pointed out that Uber doesn't own its cars and doesn't control their drivers. And he declared that "they have an app my cat could have written."
> 
> Ellison said losing money to gain market share is "idiotic" if customers won't stay with the firm. "They have nothing," he said. "No technology. And no loyalty." Ellison, who sits on the board of Tesla (TSLA), and considers Elon Musk a close friend, also asserted that Tesla could roll out a ride-sharing service with autonomously driven cars at prices two-thirds below what Uber charges, while also ensuring people get to their destinations safely.
> https://www.barrons.com/articles/or...-uber-and-wework-almost-worthless-51568924122


All he has to say is that Uber takes in millions in profit off of their drivers work, car and gas and not only loses all of those billions per quarter, but loses 57 million a day or an extra $5.2 billion per quarter.


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## jeanocelot (Sep 2, 2016)

Agreed. U/L's product is about as pure a commodity as an economist could dream of. A new Uber could be up & running for less than 9 figures. It's not like eBay selling collectable Beanie babies.


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## dirtylee (Sep 2, 2015)

Oracle dude is right. 

Pax dont give a **** as long as someone not too sketchy scoops them up on the cheap.


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## Brooklyn (Jul 29, 2014)

nouberipo said:


> Drivers and paxoles
> 
> 
> Since they see themselves above the law with everything else wouldn't this be a viable revenue stream for them? They obviously have the money and connections to disregard laws and regulations that were basically tailor made for companies such as Uber and Lyft.


I mean for the customer.

I as a customer check Uber and Lyft and the taxi app to see which is cheaper in NYC and order a ride accordingly. There's such an over-saturation or drivers here no matter what app you use you'll find a driver.


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## Jay Dean (Apr 3, 2015)




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## The Entomologist (Sep 23, 2018)

Java is a masterpiece compared to what Uber has, yes but come on... dont try to sell tesla under those feats, neither oil magnates nor workforce want to see EV or self driving.

Let's not forget Java has so many vulnerabilities it's not even funny at this point of course the degree of person to exploit them is that of a guru while uber can get hacked by a tree in the street, literally they got hacked by a tree in the street.



Cold Fusion said:


> Larry's got a smart Kat.
> ⚠His company is Tanking, ⚠
> I guess he's on the warpath
> Maybe he should make his Kat CEO of oracle✔
> ...


And this is true, what more growth can you get out of 3 billion plus devices where they have their softwares, uber stopped at... how many tools in the world do uber...? less than a billion.


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## Who is John Galt? (Sep 28, 2016)

XPG said:


> Ellison said losing money to gain market share is "idiotic" if customers won't stay with the firm. "They have nothing," he said. "No technology. And no loyalty."


Ellison is merely reiterating what billionaire fund manager Hamish Douglass said two and a half years ago.

"I see Uber as one of the stupidest businesses in history," Mr Douglass said. "The probability of this business not going bankrupt in a decade is like 1 per cent."

Pointing to Uber's high-cost, owner-driver model and what he described as its almost "valueless" user base, Mr Douglass said the San Francisco-based business' capital-raising style was like a "Ponzi scheme".



> https://www.smh.com.au/business/mar...s-uber-is-a-ponzi-scheme-20170523-gwb701.html


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## Michael - Cleveland (Jan 1, 2015)

1.5xorbust said:


> Seems to be an accurate assessment of Uber.


... by an investor in Tesla who sees Tesla Autonomous as wiping out Uber and Lyft.

_"Ellison was said to have specifically highlighted the threat of competition from Tesla, which plans to launch a million-car-strong robo-taxi service next year. He reportedly said the company, whose board he joined in December, could lower taxi fares by two-thirds with self-driving cars."_​
Tesla is up to making what, 7 cars a day now? So let's see... those million autonomous taxis should be ready to launch in . . . (well, Ellison will be long gone anyway). But seriously, the company makes 1,000 cars a day on a good day - and they go to retail. Where are the million autonomous taxi's going to come from?


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## tohunt4me (Nov 23, 2015)

XPG said:


> *'An app my cat could have written': Larry Ellison reportedly says Uber's business model is 'almost worthless'*
> Business Insider 20 SEP 2019 by Graham Rapier
> 
> *Larry Ellison is said to be far less bullish than Wall Street when it comes to Uber.*
> ...


I could have told you that.


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## Cassiopeia (Sep 2, 2019)

Agree with LARRY >>>> what Uber has ain't much. He's also projecting a bit. There are a lot of "cats" threatening his biz >>>> blockchain etc. LARRY is a lesser known megarich dude.

"As of March 2019, he was listed by _Forbes_ magazine as the fourth-wealthiest person in the United States and as the seventh-wealthiest in the world, with a fortune of $66.1 billion, increased from $54.5 billion in 2018"



Michael - Cleveland said:


> ... by an investor in Tesla who sees Tesla Autonomous as wiping out Uber and Lyft.
> 
> _"Ellison was said to have specifically highlighted the threat of competition from Tesla, which plans to launch a million-car-strong robo-taxi service next year. He reportedly said the company, whose board he joined in December, could lower taxi fares by two-thirds with self-driving cars."_​
> Tesla is up to making what, 7 cars a day now? So let's see... those million autonomous taxis should be ready to launch in . . . (well, Ellison will be long gone anyway). But seriously, the company makes 1,000 cars a day on a good day - and they go to retail. Where are the million autonomous taxi's going to come from?


The business world now revolves around the ability to sell the future potential for $$$$ today. It's one of Elon's specialties.


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## Taikenbo (Sep 11, 2019)

Brooklyn said:


> He's right about no loyalty.
> 
> There's no incentive to stick with one app.


There's an app that's about to change all that, I became a beta tester for it, imagine finally getting 100% of what you make. No one taking what you earn.


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## Bob Reynolds (Dec 20, 2014)

Taikenbo said:


> There's an app that's about to change all that, I became a beta tester for it, imagine finally getting 100% of what you make. No one taking what you earn.


The only problem with this app is they charge a monthly fee of several hundred dollars to use it.


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## Taikenbo (Sep 11, 2019)

Bob Reynolds said:


> The only problem with this app is they charge a monthly fee of several hundred dollars to use it.


Actually, they charge nothing...it's truly free to use


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