₦airaland Forum

LesbianBoy:
So who should he "thank" for the song FALL

Tekno too. Because "FALL" was actually remodelled after "IF". It's the same beat pattern.

ephi321:
Very informative, thanks.

But the main aim of any business is to make money, there is no point if they fold up despite high revenues so they need a strategy to manage their competition.

Exactly. Just like Amazon, they'd be playing "money games" for a long time... until they find another separate business that'd be responsible for bringing in the profits (just like Amazon subsequently found AWS Cloud [which accounts for all Amazon's profit now]).

Then, the core ride hailing can keep burning money and growing the top line, while the other business would be supplying the profits, to keep investors happy.

For now, Uber still has enough time to find that "other business".

ephi321:
Right, the expansion bit makes sense. I know startups do struggle in the early years but Uber does not purchase/own the cars used by their drivers so besides salaries and commissions, I still find it hard to understand why they lost that much money.

Uber sells one dollar to users as 75 cents. Also, Facebook and Google were monopolies when they started as they didn't have direct competition as such, so they burned less money. MySpace couldn't replicate exactly what Facebook was doing, as they literally had to migrate all your friends from Facebook. Google didn't have any serious competition, the incumbents were doing serious crap at that time.

Amazon started when the internet was just starting, so they literally had no competition too, so they could scale up quickly before people started competing with them. They had like 5 or more years headstart. Yet, they only started posting consistent tiny profits after 20 or so years of operation.

But in Uber's case, as early as a year after they launched their now popular low-end ride hailing, they already got competitors raising billions, so they have had to be brutal with marketing, subsidizing fares etc.

Lilimax:
Uber works and is profitable in many countries and I know ours in Naija will not be different

Nigeria contributes to 1 percent or even less than one percent of Uber's revenue. The market is still very small and nascent for a company of Uber's size. They'd be running at a deep loss here in Nigeria... for now

pmc01:
Pardon my ignorance, how does the loss demonstrate the company is "healthy and resilient"? Is it that previous quarterly postings has recorded heavier losses than this?

Their top line revenue and market share is growing... at a pretty fast rate

ephi321:
So their costs outweighed all the revenues made... what exactly are they spending money on?

marketing, paying drivers incentives to join, subsidizing fares for riders, hiring and maintaining staff (over 6,000 employees worldwide), and expanding into new markets.

Considering how many competitors they have, and how well funded their competitors are, Uber's loss seems to be even modest, to say the least.

tobiadebolas:
One needs to careful.is 2016 over.thats if he said it. You don't come here and think u can mock a man of God. It's a pity that some people just want there lives wasted before it even starts having meaning.

Go and give your mummy her phone back.

Apparently, Nairaland's got a whole lot of children flocking around or a large number of brainless people who just refuse to come out and accept the truth staring in their faces.

abujaticket:
good taike

Thanks!

praizeblog:
r U sure

Yes! You can try it now, and testify to others. You'd get messages at scheduled time of the day. no spam. All messages come with a lot of content. You'd get only interesting stuff, as everyone hates boring stuff.
Just give it a try

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