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
Lulz, they will never make any money, I could have told you that a decade ago. Companies like that are in the business of fleecing investors and they’ll stay in the business as long as investors keep giving them more money, which can keep on going for a very long time.
Ride sharing apps are a genius idea, but they are not really monetizable in a way of building a hundred billion dollar company. If Uber were to ever try and make any actual profit, they would immediately lose their entire business to competitors. It costs fuck all to make and run a app that does the same thing that uber does and companies around the world doing the same thing are dime a dozen.
So why is Uber’s market valuation that high? Simple, there are a lot of superficial investors out there who don’t really think through where they are giving their money. This is excel investing, show them growth and revenue and they’ll think no more of it. The fact that uber doesn’t get to keep any of that revenue goes unnoticed.
Latest Answers