The Economist has written an article on the history and future of Uber.
In a recent article on The Economist website, the outline a history of Uber. Talking about its history, as well as its future, the article states that “Uber will probably have around $4 billion in net revenues” in 2016, “more than double the previous year’s.”
The article does the typical comparison of Uber to Facebook. A comparison Uber, itself, uses in presentations. Yet, it also compares to Amazon, stating how “Amazon has favoured relentless growth over the pursuit of profits for much of its history, keeping prices low to win loyalty and grab market share.”[sic] Uber keeps growing and growing, without showing a profit, and then one day, hopefully, like Amazon, they will be in the black. In fact, it states how Uber claimed “earlier this year that its developed-market business had become profitable.” Yet, “Uber lost an estimated $100m in America in the second quarter.”
The article reports that Uber had $2.1 billion in revenue in the first two quarters of 2016, but lost at least $1.3 billion. What was lost was in China where Uber has merged with rival Didi Chuxing. Now, they’ve stopped pouring millions into what seemed like a losing battle for marketshare.
The article does well to explain that uber carries a valuation of close to $70 billion, and yet it has attracted only $18 billion in equity and debt. Many drivers, and riders alike, don’t understand these numbers.
Curious, the article talks about Uber’s mapping service, and how it’s “hoovered” talent from Google. “Uber dreams “big” but “not as broad” as Google, says Brian McClendon, a high-profile hire from Google who now runs Uber’s mapping team.”
The well-written article concludes with talks about autonomous vehicles which is, obviously, Uber’s future.