# Uber: Virus Could Push Cash Bleed Over The Edge



## Karen carpenter (Nov 7, 2017)

Seeking Alpha: Uber: Virus Could Push Cash Bleed Over The Edge.
https://seekingalpha.com/article/43...tm_source=news.google.com&utm_medium=referral


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## ABC123DEF (Jun 9, 2015)

Bah...nothing to see here. Dara had his chest stuck out crowing like a rooster about how much cash Fuber had in the bank. There's no trouble in paradise. All is well. -o:


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## TemptingFate (May 2, 2019)

Uber was like a car driving off a cliff before coronavirus. Now the car is on fire while still falling off a cliff. Luckily, Dara has a parachute to save himself.


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## SHalester (Aug 25, 2019)

and no mention how much cash Uber has onhand. ten billion or so...


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## ABC123DEF (Jun 9, 2015)

*sniff sniff* What is that I smell cooking? Hmmm...now, it seems to have a bit of a burnt paper smell. Could it be...BOOKS? -o:


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## goneubering (Aug 17, 2017)

Karen carpenter said:


> Seeking Alpha: Uber: Virus Could Push Cash Bleed Over The Edge.
> https://seekingalpha.com/article/43...tm_source=news.google.com&utm_medium=referral


I agree with this.

*The company can reduce R&D spending by reducing or dropping automation development. This, in my opinion, is a gross misallocation of resources*


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## ANT 7 (Oct 14, 2018)

There is a pilot term called "coffin corner"........go to slow and you stall, too fast you lose control, and your airspeed window between one and the other might only be 5 knots.......

Uber has been flying in the coffin corner for years. This year or next, it will die if Softbank goes broke (very possible) or be bought out.


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## tohunt4me (Nov 23, 2015)

Karen carpenter said:


> Seeking Alpha: Uber: Virus Could Push Cash Bleed Over The Edge.
> https://seekingalpha.com/article/43...tm_source=news.google.com&utm_medium=referral


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## ANT 7 (Oct 14, 2018)

Dara is so full of shit.

We're down about 75% or more in my city......everywhere else is the same.

When this thing is done, it's going to take 6-12 months before we have almost everyone back to work.

So, uummmm, Dara, how do you plan to keep the lights on for another 12+ months with a 75% + revenue drop ?

Softbank is toast, they couldn't close on the We Work buyout because they're basically out of credibility and soon will be out of money.......there is no one left to help you but yourself.


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## ABC123DEF (Jun 9, 2015)

This company has burned up SO much cash in the last 10 years: lavish parties (no drivers allowed), lawsuit upon lawsuit upon lawsuit, driverless cars, lobbying, buying/leasing of new corporate offices, an underwhelming IPO, HUGE cashouts by Travis, Garrett, and others, what else am I forgetting? This virus could be the gut punch that finally puts this bag of schidtt company out of its misery.


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## Stevie The magic Unicorn (Apr 3, 2018)

Dara isn't worried because Dara is still getting paid and Dara will still be a billionaire whether or not uber fails.


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## Carlycat (Mar 31, 2020)

ABC123DEF said:


> This company has burned up SO much cash in the last 10 years: lavish parties (no drivers allowed), lawsuit upon lawsuit upon lawsuit, driverless cars, lobbying, buying/leasing of new corporate offices, an underwhelming IPO, HUGE cashouts by Travis, Garrett, and others, what else am I forgetting? This virus could be the gut punch that finally puts this bag of schidtt company out of its misery.


Then what will we do?


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## ABC123DEF (Jun 9, 2015)

What will we do about what?


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## Uber's Guber (Oct 22, 2017)

goneubering said:


> I agree with this.
> *The company can reduce R&D spending by reducing or dropping automation development. This, in my opinion, is a gross misallocation of resources*


Except R&D funding is Uber's top priority; Uber has no interest in sustaining "partnerships" with drivers in the future.


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## Bob Reynolds (Dec 20, 2014)

Actually Uber may be better off with less rides and may be able to hold onto more cash. 

Remember, they have been losing money on every ride. If they have less rides then they should lose less money.


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## waldowainthrop (Oct 25, 2019)

Bob Reynolds said:


> Actually Uber may be better off with less rides and may be able to hold onto more cash.
> 
> Remember, they have been losing money on every ride. If they have less rides then they should lose less money.


Uber Eats is reportedly _way_ more of a money loser than UberX, and Uber Eats is a bigger part of their business proportionally than it was before (comparing any point in 2019 to any foreseeable point after February 2020).

I'm not even sure if UberX is technically a money loser at this point. I bet they were around profit-neutral on it by now.

Not having to expand into new markets, no new onboarding, very little surge/promotions to pay, and shutting down the physical offices is probably saving them money, though.


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## TemptingFate (May 2, 2019)

Bob Reynolds said:


> Actually Uber may be better off with less rides and may be able to hold onto more cash.
> 
> Remember, they have been losing money on every ride. If they have less rides then they should lose less money.


Haha. So if Uber would just shut off the app they would improve their profitability!

No. It doesn't work that way. Rideshare is their major revenue generating activity. Their operating/admin costs are pretty fixed, unless they lay off all their staff. Uber losses will mount if costs continue but revenue is cut.









Understanding Why Uber Loses Money


Uber's latest numbers are out. Let's avoid the big, confusing numbers and think about why the company loses money in simpler terms.




news.crunchbase.com


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## mbd (Aug 27, 2018)

Per CNBC
“It helps that no less a figure than Larry Kudlow has gone a long way to bolster this mythology around the Fed, claiming today that the Fed had the "ultimate bazooka."


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## Irishjohn831 (Aug 11, 2017)

Yeah right, they will just go to their usual plan, rob more money from drivers under Uber receives


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## Joe Knob (Oct 7, 2015)

so.. what about LYFT? .. the big pink elephant in the room??


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## ABC123DEF (Jun 9, 2015)

Joe Knob said:


> so.. what about LYFT? .. the big pink elephant in the room??


Do it for the 'community'. Come on, now!


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## goneubering (Aug 17, 2017)

waldowainthrop said:


> Uber Eats is reportedly _way_ more of a money loser than UberX, and Uber Eats is a bigger part of their business proportionally than it was before (comparing any point in 2019 to any foreseeable point after February 2020).
> 
> I'm not even sure if UberX is technically a money loser at this point. I bet they were around profit-neutral on it by now.
> 
> Not having to expand into new markets, no new onboarding, very little surge/promotions to pay, and shutting down the physical offices is probably saving them money, though.


X has supposedly been making a profit for years. IF you can believe TK.


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## waldowainthrop (Oct 25, 2019)

goneubering said:


> X has supposedly been making a profit for years. IF you can believe TK.


I don't believe Kalanick but it's plausible that money could be made running UberX plus premium platforms, especially with less rapid expansion.


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## Stevie The magic Unicorn (Apr 3, 2018)

Joe Knob said:


> so.. what about LYFT? .. the big pink elephant in the room??


There's no lyft eats...

Lyft is taking a much bigger hit than uber is during this.


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## June132017 (Jun 13, 2017)

Stevie The magic Unicorn said:


> There's no lyft eats...
> 
> Lyft is taking a much bigger hit than uber is during this.


It still boggles the mind how these companies couldn't turn a massive profit before the virus.


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## mrpjfresh (Aug 16, 2016)

^ Drivers' fate in Dara, the Persian God King's army



waldowainthrop said:


> Uber Eats is reportedly _way_ more of a money loser than UberX, and Uber Eats is a bigger part of their business proportionally than it was before (comparing any point in 2019 to any foreseeable point after February 2020).
> 
> I'm not even sure if UberX is technically a money loser at this point. I bet they were around profit-neutral on it by now.
> 
> Not having to expand into new markets, no new onboarding, very little surge/promotions to pay, and shutting down the physical offices is probably saving them money, though.


Yeah, I agree. There is no way they are losing money on the personal transport at this point especially taking around 40-60% per ride. Drivers bear most of the costs outside their expensive insurance policies. There is just no way. They only want to wrap everything together to show a loss for tax purposes if I were to guess.


Joe Knob said:


> so.. what about LYFT? .. the big pink elephant in the room??


Way less cash reserves and no backup plan Bs like a delivery option which would be raking it in now. Don't need a magic eight ball here to see "Get Your Brown Pants. Prospects Bleak".


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## goneubering (Aug 17, 2017)

June132017 said:


> It still boggles the mind how these companies couldn't turn a massive profit before the virus.


They have plenty of revenue but they had excessive spending. In other words they're like the government.


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## SharingMyRidres (Feb 11, 2020)

Virus is going to break a lot of these not profitable companies as the money drys up..



June132017 said:


> It still boggles the mind how these companies couldn't turn a massive profit before the virus.


True.


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## Blatherskite (Nov 30, 2016)

ANT 7 said:


> There is a pilot term called "coffin corner"........go to slow and you stall, too fast you lose control, and your airspeed window between one and the other might only be 5 knots.......
> 
> Uber has been flying in the coffin corner for years. This year or next, it will die if Softbank goes broke (very possible) or be bought out.


How could Softbank possibly go bust with their excellent track record of investing in stellar products such as WeWork?


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## ANT 7 (Oct 14, 2018)

Softbank has invested in 16 gig companies.

https://www.nytimes.com/2019/11/12/technology/softbank-startups.html
5 are rideshare, and comprise the financial bulk of their commitments, namely some $39 BILLION...........then it's delivery, trucking, hotels, real estate and dog walking 

We all know how well ride share and hotels are doing right now. Softbank is about to have a big problem because the Saudi's, their biggest backer, do not want to help them and the conventional banks are now overexposed too. This means that Uber cannot expect money to magically appear from Softbank when they run out, and they will. Someone will buy Uber eventually, either by choice or force, and what happens after that, is game on and bet's off.

https://economictimes.indiatimes.co...k-debt-load/articleshow/74703380.cms?from=mdr


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## AllenChicago (Nov 19, 2015)

Today, Democrats blocked Republicans from adding an additional $250 Billion to the almost exhausted Business Assistance (PPP/EIDL) fund.

https://nypost.com/2020/04/09/senate-dems-block-250-billion-for-coronavirus-small-business-loans/


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