Amazon v the new cash burning tech megacaps

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Submitted by gzz on July 18, 2021 - 1:16pm

Submitted by scaredyclassic on July 18, 2021 - 5:14pm.

I'm interested in how a company like Uber loses money. Isn't it just a computer moneymaking machine? Where does the money go?

Submitted by gzz on July 18, 2021 - 7:47pm.

They cost half the price of a taxi, sometimes less.

Submitted by scaredyclassic on July 18, 2021 - 8:32pm.

If they charged market price, wouldn't people still Uber v. A taxi?

Submitted by barnaby33 on July 19, 2021 - 7:49am.

Ubers fundamental problem is that it can't change the fundamental problem, of cost of transport. It was cheap because it was subsidized. Sadly that has gone away for the most part.

Submitted by utcsox on July 19, 2021 - 9:04am.

barnaby33 wrote:
Ubers fundamental problem is that it can't change the fundamental problem, of cost of transport. It was cheap because it was subsidized. Sadly that has gone away for the most part.

Is this true? If the robo-taxi concept can become a reality, then the cost can dramatically reduced. I think both Uber/Lyft are betting on this...

Submitted by gzz on July 19, 2021 - 9:13am.

I would still take Uber instead of a taxi if the price were the same, except if there's a waiting taxi at a stand.

However, a lot of my Uber use was replacing driving, not replacing a taxi. For example, I can park at SAN or ask someone for a ride, but when Uber cost $9 from OB it was the best option.

I also took Uber from SFO to SF many times for as little as $20. If Uber cost the taxi $65 amount, I might just take BART instead for $9.

I really do like the company a lot, and wish it wasn't unsustainably unprofitable.

Submitted by gzz on July 19, 2021 - 10:45am.

I purchased a few lottery ticket $105 puts for COIN, they cost $150 each.

Submitted by barnaby33 on July 23, 2021 - 3:14pm.

Here you go utcsox Uber business model. Perhaps a bit old but nothing has fundamentally changed.

Submitted by gzz on July 23, 2021 - 5:43pm.

Recently I encouraged my GF to try Lyft for the first time on what is normally a $10-15 ride from SAN to OB. Instead they quoted her $44. So I just picked her up.

Last time I took a taxi it was about $18 for this route.

Strangely, I checked for a bug and looked at the cost to go to the airport, and it was a normal $16.

Maybe losing half their business and charging luxury prices is the way forward, but the size of that market is a lot smaller.

I am short Uber and Lyft both even though I am generally a fan of both and would prefer they succeed. I just doubt they will.

Submitted by carlsbadworker on July 23, 2021 - 5:54pm.

I don't think Uber ever can make money...unless it invents self-driving car. It's just math.

However, I think it is unfair to compare Amazon cash burn with today's tech cash burn. In Amazon days, Internet just started to grow, so there isn't many Internet users...it takes years for Amazon to get 1 million users (which was a big deal back in 1997). Today, tech grows at much faster pace, given most business has higher upfront costs to acquire a customer, their corresponding higher cash burn could be a positive rather than negative sign.

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