Eli5: I saw that Uber is still not making money, how is that possible, they have a lot of people working for them, worldwide known and also if they dont make any money how are they still alive?
In: Economics
An investor will look at numbers besides profits. They look at the future. For uber, that’s looking ok. They turned a negative cash flow 2-3 years ago into positive operational cash flow today.
There’s other costs besides operational ones so they can still file a loss but we know
-rides cost less than they bring in. Good.
-it wasn’t like that a few years ago. it got better fast, and thus could get better still. Good.
Plus there’s a few long game technologies that will require significant investment so a huge company like uber is well placed to catch those.
Will we all be hailing self-driving cars instead of owning cars in a few years? Cars are just sitting in the garage or in parking lots most of the time. Doesn’t make much sense. That could change everything. Some part of the price is in that long term potential.
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