The Intrinsic Value Podcast - The Investor’s Podcast Network
TIVP016: Uber (UBER): Cash Burner To Compounder? w/ Shawn O’Malley & Daniel Mahncke
Apr 20, 2025
Shawn O’Malley and Daniel Mahnke dive into Uber's transformation from a cash-burning giant to a profitable powerhouse in 2023. They explore its global growth strategies, revealing why international markets outpace U.S. profitability. The duo discusses Uber's competitive tactics against Lyft and the implications of investing in rivals. Listeners will learn how autonomous vehicles may actually benefit Uber and why notable investors like Bill Ackman have placed big bets on the company. The analysis also touches on regulatory challenges and Uber's innovative ventures like Uber Eats.
01:24:25
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Quick takeaways
- Uber's flexible business model allows real-time driver availability adjustments, creating a dynamic supply that effectively meets fluctuating ride demand.
- Despite regulatory hurdles, including labor classification challenges, Uber has adeptly navigated markets like California to maintain profitability and operational viability.
Deep dives
Flexible Business Model
Uber's business model allows for flexibility by not having vehicles on its balance sheet, enabling drivers to adjust availability in real time based on demand. This results in a dynamic supply that can easily adapt to fluctuations in ride requests. In contrast, companies like Waymo face challenges in matching demand to fixed vehicle supply, leading to inefficiencies. Hence, forming partnerships with existing networks may provide an advantageous route for those looking to compete against Uber.
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