The Daily Why Uber Still Can’t Make a Profit
Aug 29, 2019
Mike Isaac, a technology reporter for The New York Times and author of "Super Pumped: The Battle for Uber," digs deep into Uber's ongoing financial struggles. He reveals how internal scandals and management turmoil have hindered the company’s growth. Despite its vast market presence and diversification into areas like food delivery, Uber still can't achieve profitability. Isaac draws comparisons between Uber and giants like Amazon, highlighting the gig economy's unique challenges and the implications for urban mobility in the future.
AI Snips
Chapters
Books
Transcript
Episode notes
Uber's Tumultuous Past
- Uber faced numerous scandals, including sexual harassment allegations and the CEO berating a driver.
- These incidents damaged Uber's reputation and contributed to the rise of competitor Lyft.
Growth Over Profit
- Uber's business model prioritizes growth over profitability, aiming to become essential before raising prices.
- This strategy involves subsidizing rides and aggressively expanding into new markets, even at a loss.
The Silicon Valley Model
- Uber's strategy, similar to Amazon's and Facebook's, was to prioritize market saturation over immediate profit.
- Investors accepted this model, pouring billions into Uber, expecting eventual returns after achieving dominance.
