‘uber Most Stupid Investment In History’ – Top Fund Manager - Business - Nairaland
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| ‘uber Most Stupid Investment In History’ – Top Fund Manager by Aokiji: 11:59am On May 25, 2017 |
A co-founder of the Magellan Financial Group, which manages more than $37 billion, thinks the ride-hailing service Uber has a less than 1% chance of surviving the next decade. “It’s constantly losing money, and its capital-raising strategy is a Ponzi scheme,” the co-founder, Hamish Douglass, said at the annual Stockbrokers and Financial Advisers Conference in Sydney. Douglass says Uber is under threat from the arrival of autonomous cars, in which he doesn’t think ride-sharing business has an advantage. He referred to Uber as one of the most stupid investments in history with a high probability of going bankrupt. “When I look at Uber … I think of it as one of the most stupid investments in history,” the Australian Financial Review reported him as saying. “The probability of this business going bankrupt in a decade is 99%.” And the competition is coming because the barriers to entry to ride-sharing are low. “All they do is keep increasing their private-market valuation, and someone always says, I’ll put some money up, because next time they raise, it’ll be at a higher price,” Douglass says. Uber was founded in 2009 in San Francisco and now operates in 58 countries and is valued at more than $60 billion. Douglass and Chris Mackay founded Magellan a decade ago on the investing principles of Warren Buffett at Berkshire Hathaway. The 2016 BRW Rich list shows Douglass’ wealth at about $376 million. Read more at http://www.herald.ng/uber-stupid-investment-history-top-fund-manager/ |
| Re: ‘uber Most Stupid Investment In History’ – Top Fund Manager by Destined2win: 12:04pm On May 25, 2017 |
There is nothing like a 'stupid' idea. If the owners are innovative and move with time and tide, and can be able to explore different strategies, it won't go bankrupt. 1 Like |
| Re: ‘uber Most Stupid Investment In History’ – Top Fund Manager by madone: 12:28pm On May 25, 2017 |
Destined2win:yea I think that guy is just trying to discourage competition |
| Re: ‘uber Most Stupid Investment In History’ – Top Fund Manager by cooldood(m): 6:18pm On May 25, 2017 |
madone: Maybe when you see Uber's financials, then you'd realise the guy knows what he is saying (Uber is adopting a loss-leader strategy, which will not last before competitors come for their neck) . Its a whack investment, cos there's really no uniqueness, except trying to compete on pricing, which is so easy to do, for competitors with deep-pocket financiers. Other than that, many developers can come up with the app, use google map, gbam...that's it. Even Google can send Uber packing shortly, once they launch driverless vehicles in 2020 fully. |
| Re: ‘uber Most Stupid Investment In History’ – Top Fund Manager by naijacutee(f): 6:41pm On May 25, 2017 |
cooldood: I disagree that a loss leader strategy is a bad move on the part of Uber. Amazon has turned a loss for 10+ years and its investors have not made much back. But Amazons losses have paid for arguably the largest wealth of knowledge in the retail industry amassed till date.With this knowledge, Amazon can turn a profit in a heartbeat. The have something like 250million credit card details ACROSS THE GLOBe on their servers. Including mine! Look at Amazons income sheet below. I believe Uber is trying to do the same, which is why they spend so much acquiring users onto the platform. When you install the Uber app, it wants access to your location, your weather, your text messages, your contacts, your cameras, photos - everything. See: https://www.uber.com/legal/other/ios-permissions/ They understand that data is money and they are mining data like gold. Let's revisit this in 5 years :-)
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| Re: ‘uber Most Stupid Investment In History’ – Top Fund Manager by cooldood(m): 6:57pm On May 25, 2017 |
naijacutee: Keep deceiving yourself and Uber. Which product or unique service have you seen developed by Uber all over? None. In fact you use a very wrong sector to compare that of Uber. Its like comparing apple and pineapple. Amazon have consistently innovate, re-invent, add more and more products and services, Uber isn't doing such. When Amazon launched out in 1994, the world of tech. wasnt this developed and so competition wasn't as fierce as it is now (due to level of internet penetration globally), and so Amazon was able to gain traction with data and launched out many data analytics products along the way. Therefore, they offered some unique, patented solutions. Uber has no unique product offering and they are getting it all wrong. Just as its happening in 9ja where they have adopted pricing war strategy, it speaks volume of the fact that, if the competitors crash their own pricing below Uber's floor-price, Uber will be in serious trouble. Because their financial model will be disrupted completely and they'd be put off-guard. If they continue with the 'war', then its clear that because they are still very far off from breaking even, they could be ran aground, not to mention the automated taxi services in the 'cooler' coming out soon. They'd soon pack up if Google or Apple should launch that service in 2020. |
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