05-10-2019, 03:41 PM
(05-10-2019, 03:08 PM)fredtoast Wrote: I guess you did not read the part where they have reduced their pay while demand seems to be on the rise.
In fact there seems to be a very large demand for these ride services. If not then how are Uber and Lyft IPOs worth billions of dollars?
Uber's paying process isn't as easy as saying "reduced pay". They pay on time and distance and as they adjust they tend to raise one and lower the other as they look to try to maximize people's profits in various cities. Recently they made a move to address people who hit traffic lowering the distance rate while increasing the time rate. What this did was make trips that are straight shots with no traffic less valuable but trips that had more traffic more valuable. Reduced pay is person by person as others in certain areas now make more than they previously did. The other issue is related to a market flooded by drivers depending on location and time of day. When people can jump from one fare to the next their per hour take home will be less than when their was a high demand with a lower supply of drivers. My understanding though is Uber hasn't changed their "take rate" or what percentage they get per ride in years.
You aren't real familiar with tech IPO's are you? Tech is the one place where balance sheets don't matter, in fact you don't have to be close to profitable to be worth a ton at IPO. It is enigma that no one ever can explain until after they fail when everyone likes to point out their valuation made no sense to start. To date, Uber has never turned a profit in it's existence.
