# Uber is expected to begin another huge round of layoffs, cutting thousands more jobs just weeks after laying off 14% of its workforce



## jocker12 (May 11, 2017)

https://www.businessinsider.com/uber-layoffs-another-round-of-thousands-cut-on-monday-source-2020-5
*Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group.*


Uber is not done with its layoffs and employees are bracing for another round on Monday, someone familiar with the matter tells Business Insider.
This person says that thousands more will be cut from Uber's payroll.
Uber also told employees last week about their severance package: 10 weeks plus paid healthcare until the end of the year, the person tells Business Insider.
Uber most recently cut 3,700 jobs, 14% of its total workforce, earlier in May.
Uber is expected to begin another round of layoffs on Monday, a source with knowledge of the situation tells Business Insider.

Business Insider could not confirm the number of people that will be let go, although this person said that Uber plans to cut thousands from its workforce. We cannot confirm that those cuts will all happen on Monday however, as Business Insider previously reported, at the global all-hands meeting about two weeks ago, CEO Dara Khosrowshahi told employees that it was finalizing layoff plans and staff would know about them within two weeks. The next day, it cut 3,700 employees.

Uber employed 28,600 global employees - 16,200 outside the United States - as of March 31, it said in an its last quarterly report filed to the SEC on May 8. The 3,700 jobs cut earlier this month accounted for about 14% of its total workforce, the company said.

When asked about the next round of layoff a company spokesperson said, "As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever."

If Khosrowshahi and team are not considering more layoffs at this time, then that two week-time frame that he warned about would be complete. However, sources at Uber that Business Insider has talked to are not convinced the layoffs are over, particularly if the reported acquisition of Grubhub occurs. In that case, Uber will almost certainly cut jobs as it consolidates overlapping roles within Uber Eats and Grubhub.

At the last all-hands meeting, Uber discussed the severance package being offered to the current crop of laid off employees: 10 weeks of pay and healthcare paid until the end of 2020, the source familiar said.

Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group, this person believes. Business Insider learned that the leader of the Freight unit, Lior Ron, did warn employees that there would be layoffs. The CEO of the self-driving car unit, Eric Meyhofer, also did not answer any questions about layoffs at the all-hands meeting last week.

But, the atmosphere at the all-hands was not all gloom and doom. Employees submit questions for the all-hands meetings in advance and vote on them. And one question that received many votes was asking senior leadership to name their "guilty pleasure" songs. So, at the all-hands meeting, Meyhofer enjoyed a discussion on that. While some people found a discussion about songs while some people are worried about their jobs to be "tone deaf" as one person told us, others enjoyed it.

Uber laid off 3,700 people about two weeks ago, on top of the cuts made when it shuttered certain international Uber Eats organizations, transferring others to its Middle East subsidiary Careem and laying off a third of Careem's employees. It also had multiple rounds of layoffs in 2019, cutting about 1,100 people. Should this next round of layoffs be as large as the one earlier this month, at around 4,000, Uber will have cut about 10,000 jobs from its payroll over the past year.

_*Are you an Uber insider with insight to share?* Contact Julie Bort via email at [email protected] or on encrypted chat app Signal at (970) 430-6112 (no PR inquiries, please). Open DMs on Twitter @Julie188._


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## SHalester (Aug 25, 2019)

Just saying: investors love this.


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## jocker12 (May 11, 2017)

SHalester said:


> Just saying: investors love this.


This is done to raise the stock value in order to acquire Grubhub. As long as that purchase is offered (by Uber) to be done with stocks, and firing people is loved by investors, and the stock value goes up, Uber will need less stock to cover those $6 billion they've offered for Grubhub.

It looks like Grubhub acquisition is considered vital for Uber, more vital than self-driving cars hallucination, that previously was completely shielded from any budget or number of employees adjustments.


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## SHalester (Aug 25, 2019)

jocker12 said:


> As long as that purchase is offered (by Uber) to be done with stocks,


so far the offer is ONLY stock and GH said FOAD. Discussions continue.


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## jocker12 (May 11, 2017)

SHalester said:


> so far the offer is ONLY stock and GH said FOAD. Discussions continue.


Correct.


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## goneubering (Aug 17, 2017)

jocker12 said:


> This is done to raise the stock value in order to acquire Grubhub. As long as that purchase is offered (by Uber) to be done with stocks, and firing people is loved by investors, and the stock value goes up, Uber will need less stock to cover those $6 billion they've offered for Grubhub.
> 
> It looks like Grubhub acquisition is considered vital for Uber, more vital than self-driving cars hallucination, that previously was completely shielded from any budget or number of employees adjustments.


Dara's doing what he should. Grubhub is a real business. Uber's self driving car division is a big $ losing fantasy.


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## mbd (Aug 27, 2018)

Remote working is changing Silicon Valley 😉


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## tohunt4me (Nov 23, 2015)

jocker12 said:


> https://www.businessinsider.com/uber-layoffs-another-round-of-thousands-cut-on-monday-source-2020-5
> *Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group.*
> 
> 
> ...


This is how things Will Be
Across the Country
For Everyone.

Just Beginning.

Buckle up.


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## FormerTaxiDriver♧ (Apr 5, 2018)

jocker12 said:


> https://www.businessinsider.com/uber-layoffs-another-round-of-thousands-cut-on-monday-source-2020-5
> *Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group.*
> 
> 
> ...


I guess there is no phone support already. Now app developers are going next??

What's gonna happen when the shit gets real buggy and starts crashing? Lol


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## Daisey77 (Jan 13, 2016)

FormerTaxiDriver♧ said:


> I guess there is no phone support already. Now app developers are going next??
> 
> What's gonna happen when the shit gets real buggy and starts crashing? Lol


 They were the ones causing them! Watch, with all the developers gone, the app is going to work just fine . &#128517;


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## tohunt4me (Nov 23, 2015)

FormerTaxiDriver♧ said:


> I guess there is no phone support already. Now app developers are going next??
> 
> What's gonna happen when the shit gets real buggy and starts crashing? Lol


DRIVERS WILL BE BLAMED !


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## FormerTaxiDriver♧ (Apr 5, 2018)

tohunt4me said:


> DRIVERS WILL BE BLAMED !


Yes, ratings will plummet. False reports will be enforced automatically too!


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## mbd (Aug 27, 2018)

Remote working will have some impact in SF, NYC, Seattle and few others places . Rents should go down in these places . 😄 Companies can hire the best talent and offer them to work remote. Some prefer to go to SF, NYC, Seattle and pay the extra rent. Now the question is do the companies pay the same SF salary 😄
Cost for a company to send somebody to another city for a few days is around 1000$👍.
What if it is Tokyo🤔 it might be 2500$. Instead of 20 trips , maybe 10 trips = 25,000$ savings.

They can also save money on office space . Maybe a 20% reduction in square footage cost.
AAPL- AAPL campus cost is close to 10 billion, so don’t expect a big shift from them 😄


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## jocker12 (May 11, 2017)

goneubering said:


> Dara's doing what he should. Grubhub is a real business. Uber's self driving car division is a big $ losing fantasy.


https://www.wsj.com/articles/uber-c...-45-offices-in-coronavirus-crunch-11589814608
And

https://www.telegraph.co.uk/technology/2020/05/18/uber-ditches-plan-self-driving-robot-scooters/


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## jocker12 (May 11, 2017)

Dara Khosrowshahi full layoffs email -

Team Uber:

These have been unprecedented and challenging times for everyone-our societies, our governments, our families, our economies, all around the world. They've also been challenging for Uber, and many of you, as you've waited for us to define the road ahead. I've said clearly that we had to take tough action to resize our company to the new reality of our business, and that I would come back to you this week with the specifics.

Today I have the specifics: we have made the incredibly difficult decision to reduce our workforce by around 3,000 people, and to reduce investments in several non-core projects. As a leadership team we had to take the time to make the right decisions, to ensure that we are treating our people well, and to make certain that we could walk you through our decision making in the sort of detailed and transparent manner you deserve.

Where we started and hard choices

We began 2020 on an accelerated path to total company profitability. Then the coronavirus hit us with a once-in-a-generation public health and economic crisis. People are rightfully staying home, and our Rides business, our main profit generator, is down around 80%. We're seeing some signs of a recovery, but it comes off of a deep hole, with limited visibility as to its speed and shape.

You've heard me say it before: hope is not a strategy. While that's easy to say, the truth is that this is a decision I struggled with. Our balance sheet is strong, Eats is doing great, Rides looks a little better, maybe we can wait this damn virus out...I wanted there to be a different answer. Let me talk to a few more CEOs...maybe one of them will tell me some good news, but there simply was no good news to hear. Ultimately, I realized that hoping the world would return to normal within any predictable timeframe, so we could pick up where we left off on our path to profitability, was not a viable option.

I knew that I had to make a hard decision, not because we are a public company, or to protect our stock price, or to please our Board or investors. I had to make this decision because our very future as an essential service for the cities of the world-our being there for millions of people and businesses who rely on us-demands it. We must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing, expanding, and innovating.

We have to take these hard actions to stand strong on our own two feet, to secure our future, and to continue on our mission.

I know that none of this will make it any easier for our friends and colleagues affected by the actions we are taking today. To those of you personally impacted, I am truly sorry. I know this will cause pain for you and your families, especially now. Many of you will be affected not because of the quality of your work, but because of strategic decisions we made to discontinue certain areas of activity, or projects that are no longer necessary, or simply because of the stark reality we face. You have been a huge part of this company and every day forward we will build on the foundations that you established, brick by brick.

Our decisions and the road forward

We have decided to re-focus our efforts on our core. If there is one silver lining regarding this crisis, it's that Eats has become an even more important resource for people at home and for restaurants; and delivery, whether of groceries or other local goods, is not only an increasing part of everyday life, it is here to stay. We no longer need to look far for the next enormous growth opportunity: we are sitting right on top of one. I will caution that while Eats growth is accelerating, the business today doesn't come close to covering our expenses. I have every belief that the moves we are making will get Eats to profitability, just as we did with Rides, but it's not going to happen overnight.

So we need to fundamentally change the way we operate. We need to make some really hard decisions about what we will and won't do going forward, based on a few principles:

We are organizing around our core: helping people move, and delivering things.

We are building a cost-efficient structure that avoids layers and duplication and can scale, at speed.

We are being intentional with our location strategy focused on key markets/hubs.

Mac will now lead a unified Mobility team, which will include Rides and, as of today, Transit. Mac will continue to manage our cross-cutting functions like Safety & Insurance, CommOps, U4B, and Business Development, the latter of which will be centralized across Rides, Eats, and Freight under Jen. Pierre will lead what we will call "Delivery" internally, encompassing Eats, Grocery and Direct.

Given the necessary cost cuts and the increased focus on core, we have decided to wind down the Incubator and AI Labs and pursue strategic alternatives for Uber Works. Due to these decisions, Zhenya has decided it makes sense to move on from Uber. Zhenya is customer-centric to her core, and I am deeply grateful for all of her hard work.

We are also looking at our geographic footprint. While it served us well for many years to cast a wide physical net, it's time to be more intentional about where we have employees on the ground. We are closing or consolidating around 45 office locations globally, including winding down Pier 70 in San Francisco and moving some of those colleagues to our new HQ in SF. And over the next 12 months we will begin the process of winding down our Singapore office and moving to a new APAC hub in a market where we operate our services.

Having learned my own personal lesson about the unpredictability of the world from the punch-in-the-gut called COVID-19, I will not make any claims with absolute certainty regarding our future. I will tell you, however, that we are making really, really hard choices now, so that we can say our goodbyes, have as much clarity as we can, move forward, and start to build again with confidence.

How we are helping departing employees

As we previewed last week, we have taken a lot of feedback and worked to provide strong severance benefits and other support for those leaving Uber, like healthcare coverage and an alumni talent directory. We're also taking care to support people in special situations a bit differently, like those on US visas or parental leaves. While the details will differ slightly by country, you can see a summary here. Every departing employee will have a 1:1 to receive the details of their individual package.

Given the global nature of these changes, and the local rules and regulations involved, the individual experience today will vary by country:

All other countries (those not listed to the right)

Argentina, China, France, Germany, India, Ireland (COE only), Italy, Kenya, Netherlands, Norway, Pakistan (Karachi only), Poland, Portugal, Slovakia, South Africa, Spain, Turkey, UK (ULL only)

In these countries, we can communicate about individual impacts today.

Everyone in these countries who is affected has already received an email, and will soon have a calendar invitation to a private meeting with a manager and HR.

If you are in one of these countries and you did not receive a separate email this morning, you are not affected.

In these countries, local laws mean that we cannot be as specific about individual impacts today.

In some countries, we will start a consultation process. In others, there are restrictions on making changes during the COVID lockdown.

If you are in one of these countries, you will get an email from Nikki describing next steps for your location.

If you are one of the many affected Uber teammates, I'll acknowledge right here that any package we offer, regardless of how thoughtful or generous, will never replace the opportunity to belong, to make a difference, to establish the kinds of bonds you establish with any important company or cause. We wouldn't be here without you. We will finish what you started, and we will be excited to see the great things that you will build next.

I am incredibly thankful to _everyone_ reading this email, because the resilience and grit you've shown has made Uber the company it is and will continue to be. I've never had a harder day professionally than today, but Uber has consistently surprised me with the challenges it has thrown my way. But it's the toughest challenges that are worthwhile, and I know even more strongly in my heart than I ever have that Uber is worth it, and more.

Dara


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## Lute Byrt (Feb 20, 2020)

Industry people call this email "Lip Service". It could also be referred to as "Blowing hot air". Dara is obviously not aware of the many things going against Uber. It appears that he has stated "I've never had a harder day professionally than today, but Uber has consistently surprised me with the challenges it has thrown my way. But it's the toughest challenges that are worthwhile, and I know even more strongly in my heart than I ever have that Uber is worth it, and more." This statement alone shows that he is not even thinking that clearly about the next six months in California and many other legal battles that have just started...As far as I am concerned, his challenge just started....



Dara,

Welcome to the new flat surge.....I think you will like it and even make more money.

Yours Always,

Driver-Partners Around the World


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## 197438 (Mar 7, 2020)

Don't you wish you were an employee of Uber now?


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## Lute Byrt (Feb 20, 2020)

Never did. I made much money driving in the past. Dara marks the turning point...


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## ABC123DEF (Jun 9, 2015)

EastBayRides said:


> Don't you wish you were an employee of Uber now?


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## waldowainthrop (Oct 25, 2019)

This well-written article initially had so many absurd comments (which were corrected by other comments shortly after):

https://arstechnica.com/cars/2020/05/uber-lays-off-3000-people-in-second-big-round-of-cuts/
If you want to see an example of how most people have no idea how Uber works, read the first page of comments. Because these folks haven't thought much about it, have never considered how the company needs to operate, how _huge_ Uber was before coronavirus, what drivers go through, how cities work - they are incredulous that Uber could even have 45 offices to close, let alone have hundreds of offices and tens of thousands of employees in total.

Also, while you're reading the comments, check out an old favorite sockmaster/instigator/"trooth"-teller from UP weighing in:

https://arstechnica.com/cars/2020/0...ts/?comments=1&post=38905651#comment-38905651
HUMAN TRAFFICKING! &#129325;


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## goneubering (Aug 17, 2017)

Lute Byrt said:


> Never did. I made much money driving in the past. Dara marks the turning point...


Uber paid drivers too much at the start because they were actually creating the rideshare business. Now they mostly pay drivers too little.


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## Lute Byrt (Feb 20, 2020)

Dara does not balance a scale very well...


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## Giantsfan1503 (Sep 18, 2019)

Lute Byrt said:


> Dara does not balance a scale very well...


Uber launders money for drug cartels. They're doing their job just fine.


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## Fuzzyelvis (Dec 7, 2014)

FormerTaxiDriver♧ said:


> I guess there is no phone support already. Now app developers are going next??
> 
> What's gonna happen when the shit gets real buggy and starts crashing? Lol


GETS buggy?


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## Lute Byrt (Feb 20, 2020)

Fuzzyelvis said:


> GETS buggy?


What has their app development team done for the last two years? Was reduction of our pay part of the development? How did that turn out for ya (Uber)? I have not seen any differences in systems since the downfall began...Looks like the US, lost a bunch of dead weight and it will not be a "New World Order", simply a better "Different Operation Directive"....Is that clear???!.....


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## FormerTaxiDriver♧ (Apr 5, 2018)

Fuzzyelvis said:


> GETS buggy?


Yes, that's slang for the source code getting corrupted over time.


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## Lute Byrt (Feb 20, 2020)

Expiration of old "bad" pharmaceutical pills...


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## observer (Dec 11, 2014)

mbd said:


> Remote working will have some impact in SF, NYC, Seattle and few others places . Rents should go down in these places . &#128516; Companies can hire the best talent and offer them to work remote. Some prefer to go to SF, NYC, Seattle and pay the extra rent. Now the question is do the companies pay the same SF salary &#128516;
> Cost for a company to send somebody to another city for a few days is around 1000$&#128077;.
> What if it is Tokyo&#129300; it might be 2500$. Instead of 20 trips , maybe 10 trips = 25,000$ savings.
> 
> ...


About 15 years ago we rented a space from the City that cost us 125K dollars a month. It was a couple huge rundown tin buildings and some acreage.

Many years later Uber rented part of the same space. The tin buildings were the same tin buildings but "gentrified". I wonder what they paid in rent.


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## Lute Byrt (Feb 20, 2020)

observer said:


> About 15 years ago we rented a space from the City that cost us 125K dollars a month. It was a couple huge rundown tin buildings and some acreage.
> 
> Many years later Uber rented part of the same space. The tin buildings were the same tin buildings but "gentrified". I wonder what they paid in rent.


Tax write off...


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## 2Cents (Jul 18, 2016)




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## jocker12 (May 11, 2017)

goneubering said:


> Uber paid drivers too much at the start


From the business point of view (which says to charge the customer the maximum he/she is agreeing to pay - so the only work is to identify how much a customer is willing to pay), this is incorrect.



goneubering said:


> because they were actually creating the rideshare business.


No. Because they afforded to operate at a loss because of the billions taken from the investors and because their goal was to kill their competition. If Uber would've been forced to operate on their actual profits, they would have died in less than a month. Even today, when they retain a lot more money percentage-wise, punishing the drivers by giving them "too little" (as you say), they have no formula to make a profit. Why? Because the costs involved with their operations (believe it or not - they have no involved assets and the drivers pay in full for fuel, insurance, and vehicles maintenance) are way too high for the output of their rideshare business print considering their size (salaries and office rent) and what servers, system maintenance and the number of engineers needed to keep up the network 24/7 requires.

In other words, there is (and it always be) a conflict between their size (which needs to be as small as possible - but it cannot be that way) and the operational costs (which also need to be as small as possible - but run at a very high level). This is the reason Amazon (to give only one example) built its own physical servers and now offers web and cloud services to clients. They have a huge amount of data that, in case it wouldn't be stored and maintained "in house" sort of speak (at the lowest possible cost), it would drastically affect their expenses.

Also, this is mainly the reason the business needs to be as small and as focused (on one main service) as possible. The more other services they've added, in order to compensate (in their delusional minds) for the rideshare losses, the more their expenses increased. And increased. And increased.

Their "growth" facade was only for their investors, that wanted growth to support and spread the idea of a popular service with huge "potential". Remember the word "POTENTIAL"? It's not an Uber or a self-driving cars service descriptive term anymore.


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## goneubering (Aug 17, 2017)

jocker12 said:


> From the business point of view (which says to charge the customer the maximum he/she is agreeing to pay - so the only work is to identify how much a customer is willing to pay), this is incorrect.
> 
> No. Because they afforded to operate at a loss because of the billions taken from the investors and because their goal was to kill their competition. If Uber would've been forced to operate on their actual profits, they would have died in less than a month. Even today, when they retain a lot more money percentage-wise, punishing the drivers by giving them "too little" (as you say), they have no formula to make a profit. Why? Because the costs involved with their operations (believe it or not - they have no involved assets and the drivers pay in full for fuel, insurance, and vehicles maintenance) are way too high for the output of their rideshare business print considering their size (salaries and office rent) and what servers, system maintenance and the number of engineers needed to keep up the network 24/7 requires.
> 
> ...


Uber makes money on rideshare. It's their other divisions like Eats and SDCs that have been dragging the whole company down.


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## jocker12 (May 11, 2017)

goneubering said:


> Uber makes money on rideshare. It's their other divisions like Eats and SDCs that have been dragging the whole company down.


I just commented about a lot of costs (and believe me, I've looked into this) involved with app-based rideshare operations..

Some media outlets wrote about this - "Uber makes money on rideshare." Do you remember their conclusion?

*"Uber's rides made a profit if you ignore interest, depreciation, and other costs."*

from

*https://arstechnica.com/cars/2019/1...-profitable-sort-of/?comments=1&post=38212149*
Meanwhile, we are looking at a company that, from its inception, burned how many billions? 18? 20? 22?


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## WokeUP (Dec 19, 2018)

jocker12 said:


> https://www.businessinsider.com/uber-layoffs-another-round-of-thousands-cut-on-monday-source-2020-5
> *Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group.*
> 
> 
> ...


nice!


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## goneubering (Aug 17, 2017)

jocker12 said:


> I just commented about a lot of costs (and believe me, I've looked into this) involved with app-based rideshare operations..
> 
> Some media outlets wrote about this - "Uber makes money on rideshare." Do you remember their conclusion?
> 
> ...


Uber's stock was UP again today.

*Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber's ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company's overall EBITDA margin is -57.58% compared to the sector median of 12.99%.*

https://www.forbes.com/sites/bethki...le-this-year-deep-dive-analysis/#2d49ecdd396d


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## Lute Byrt (Feb 20, 2020)

goneubering said:


> Uber's stock was UP again today.
> 
> *Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber's ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company's overall EBITDA margin is -57.58% compared to the sector median of 12.99%.*
> 
> https://www.forbes.com/sites/bethki...le-this-year-deep-dive-analysis/#2d49ecdd396d


That just means when it falls (in the fall) it has that much more energy to be enjoyed! Think of the tallest roller coaster....The fun part is not climbing to the top...The thrill is in the fall...Falling does not hurt (it is actually pretty fun)...Hitting the ground does though!


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## jocker12 (May 11, 2017)

goneubering said:


> Uber's stock was UP again today.
> 
> *Uber investors are encouraged by the non-GAAP Rides Adjusted EBITDA metric, which breaks out the profitability of Uber's ridesharing business separate from Uber Eats and other bets, such as autonomous vehicles. Uber reported a 281% increase in Rides Adjusted EBITDA from $195 million to $742 million in Q4 and a 34% increase from $1.54 billion to $2.07 billion in full year 2019. The company's overall EBITDA margin is -57.58% compared to the sector median of 12.99%.*
> 
> https://www.forbes.com/sites/bethki...le-this-year-deep-dive-analysis/#2d49ecdd396d


Yes. This is about the Grubhub possible deal.

You probably already know about this - "Uber Technologies Inc.'s (*UBER*) latest *stock offer* for rival food delivery company GrubHub Inc. (*GRUB*) is said to* have been rejected* as merger talks continued over the weekend.
The Wall Street Journal reported that talks between Grubhub Chief Executive Officer Matt Maloney and Uber CEO Dara Khosrowshahi on Sunday indicated that Uber's latest offer of 1.9 of its shares for each GrubHub share is too low. Khosrowshahi said he might see room to bump up the offer to 1.925 Uber shares. However, that is still well below the price GrubHub had been seeking, the report said." (https://finance.yahoo.com/news/uber-latest-takeover-offer-said-090620609.html)

because

"Earlier Tuesday, The Wall Street Journal reported that *GrubHub proposed a deal* in which its investors would have received 2.15 Uber shares for every share of GrubHub, valuing the company at roughly $6.25 billion." (https://www.marketwatch.com/story/uber-reportedly-rejects-all-stock-offer-to-buy-grubhub-2020-05-12)

From above "Four U.S. senators are pressuring the Federal Trade Commission and the Department of Justice to "closely monitor the negotiations" between Uber and food delivery giant Grubhub Seamless to merge their parasitic services into one market-dominating giant." (https://gizmodo.com/senators-demand-ftc-doj-scrutinize-potential-merger-of-1843576607)

The only way for Dara to achieve his Uber Eats absurd goals (if no first or second on the market, then out) is to swallow the competition because at this point the competition is way too strong to be beaten. What Uber has though, is a hypothetical value (the stock went up from $14 to $30 only on step by step assurances - enough cash in the bank and few rounds of massive layoffs) given by its investors because they believe his BS.

Khosrowshahi is going to sacrifice everything and anybody (in as small as possible steps investors will consider beneficial) in order to see the first dollar in profits.

Here is a great read about this comedy
https://www.forbes.com/sites/janetw...-and-forboding-gig-work-covid19/#73d461531aff
_James Titcomb summarized Uber's overall situation for the Sydney Morning Herald last week: "For the company as a whole, which includes initiatives such as electric bike and scooter rentals and a cargo-trucking unit as well as rides and deliveries, its margins went from minus 16.5% at the end of last year to minus 18.8% at the start of this one ... despite the company significantly reining in its heavy marketing costs during the quarter."

"To put it another way," Titcomb wrote, "not only does Uber lose money for every dollar it makes, it is losing more money on every dollar it makes than it was three months ago."_


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## goneubering (Aug 17, 2017)

jocker12 said:


> Yes. This is about the Grubhub possible deal.
> 
> You probably already know about this - "Uber Technologies Inc.'s (*UBER*) latest *stock offer* for rival food delivery company GrubHub Inc. (*GRUB*) is said to* have been rejected* as merger talks continued over the weekend.
> The Wall Street Journal reported that talks between Grubhub Chief Executive Officer Matt Maloney and Uber CEO Dara Khosrowshahi on Sunday indicated that Uber's latest offer of 1.9 of its shares for each GrubHub share is too low. Khosrowshahi said he might see room to bump up the offer to 1.925 Uber shares. However, that is still well below the price GrubHub had been seeking, the report said." (https://finance.yahoo.com/news/uber-latest-takeover-offer-said-090620609.html)
> ...


I'm with you. Uber's bleeding money because of so many stupid things they got into. Dara still hasn't cut deeply enough to turn a profit. In my opinion of course.


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## jocker12 (May 11, 2017)

goneubering said:


> I'm with you. Uber's bleeding money because of so many stupid things they got into. Dara still hasn't cut deeply enough to turn a profit. In my opinion of course.


And here is another very interesting read

https://seekingalpha.com/article/4349297-uber-announces-much-diminished-tam
"UBER's CEO Dara Khosrowshahi once sold UBER as the next Amazon, promising that "cars are to us what books are to Amazon." Link here. Khosrowshahi, who was Barry Diller's top salesman for a decade, pitched the taxi-hailing app, repackaged as "rideshare", as simply the first step on a journey to global domination. UBER would enter and dominate "food delivery, freight, autonomous vehicles, and even buses and bikes". Later, he added flying cars. By 2023, Khosrowshahi continued, UBER could run the entire transportation network for a city! As recently as UBER's latest 10-K, filed in February, UBER characterized its Freight business as "revolutionizing" the freight industry. And now they are simply going to shut it down? *None of these promises have ever happened, of course, and with this week's forced retrenchment, likely never will."*

"Uber is likely abandoning its ambitions to be a leader and create a revenue generating business in nearly every area besides its core taxi-hail and food delivery business. These early-non-core businesses, while inchoate and pre-revenue, gave investors hope that UBER was not just an old-fashioned transportation company making use of the latest technology - smartphone apps - but an actual technology company, with the same opportunity for horizontal expansion as Amazon. This hope was among the reasons why a negative cash burn of several billion dollars for a seemingly mundane business could turn into a $59 BN valuation.* That hope is gone.* "

"Stated another way, stock buyers have treated COVID-19 and its catastrophic impact on UBER's revenues and margins as a net positive catalyst. *This stands in stark contrast to the many other companies operating in and round UBER's universe*, including hotels, airlines, lodging, office space, and even other "unicorns"."

"The market is wrongly ascribing a $59 billion equity valuation for a Company that is collapsing its workforce, reigning in its growth ambitions, and signaling much diminished growth in the future, while it bleeds down cash to the tune of more than $5BN a year. It is faced with a nearly insurmountable $9 Billion junk debt pile.
With this week's announcements of strategy retrenchment and narrowing of its business opportunity, *UBER is potentially worth $2.31 to $11.63 per share, compared to its current $34.48 price."*


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## goneubering (Aug 17, 2017)

jocker12 said:


> And here is another very interesting read
> 
> https://seekingalpha.com/article/4349297-uber-announces-much-diminished-tam
> "UBER's CEO Dara Khosrowshahi once sold UBER as the next Amazon, promising that "cars are to us what books are to Amazon." Link here. Khosrowshahi, who was Barry Diller's top salesman for a decade, pitched the taxi-hailing app, repackaged as "rideshare", as simply the first step on a journey to global domination. UBER would enter and dominate "food delivery, freight, autonomous vehicles, and even buses and bikes". Later, he added flying cars. By 2023, Khosrowshahi continued, UBER could run the entire transportation network for a city! As recently as UBER's latest 10-K, filed in February, UBER characterized its Freight business as "revolutionizing" the freight industry. And now they are simply going to shut it down? *None of these promises have ever happened, of course, and with this week's forced retrenchment, likely never will."*
> ...


Before the coronavirus I said I would buy Uber stock at $5 but now it would have to drop even lower to interest me.


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