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Uber Is Now Valued Higher Than 80% Of The S&P: Closing In On General Motors And Ford

Tyler Durden's picture




 

Over the weekend, Bloomberg reported that just three months after it stunned observers with a $2.8 billion Series E capital raise at a $40 billion valuation, surpassing the market cap of such "blue chip" names as Canon, Yum! Brands, Delta Air Lines, Prudential and Adobe (not to mention the market cap of the entire QQQ ETF), car hailing company Uber is seeking to raise another $1.5 billion, this time at a valuation round of $50 billion: a $10 billion increase in value in a few short months.

To put this in perspective, according to CapIq, there were just 95 companies in the S&P500 with a market cap over $50 billion, suggesting Uber which did not exist when Lehman filed for bankruptcy, now has a market capitalization greater than 80% of the S&P. Specifically, at a $50 billion valuation, Uber is more "valuable" than FedEx, Marck, Deutsche Bank, General Dynamics, Nissan, Time Warner, Yahoo, Credit Suisse, Heineken and many other companies.

And since a down equity round in the VC industry is a kiss of death, it is likely that the next time Uber needs to raise capital in another 3-6 months, its valuation will likely be around $60 billion, or greater than General Motors and just why of Ford at $62 billion. It will also be bigger - on paper of course - than Lockheed Martin, Occidental, Dow Chemical, China Telecom, MOnsanto, Caterpillar, Target, and so on.

And while we have written before about both the epic bubble in private valuations as well as how tech company valuations are "completely made up", one has to see the following table showing Uber's current, past and future valuations in context, just to get a sense of the furious valuation scramble currently taking place in the tech sector which has long since put the dot com bubble to shame.

 

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Mon, 05/11/2015 - 11:47 | 6081072 NoDebt
NoDebt's picture

A damned "gray market" taxi cab company.  Fantastic.  Well done.

Revenues?  Profits?  Who cares.  Just buy it.

Mon, 05/11/2015 - 11:50 | 6081094 knukles
knukles's picture

Paired Trade:  Short Uber, Long S&P
Will rank right up there with the great of the 70's, Short NT&T, Long S&P (when NT&T worth more than entire S&P500)

Mon, 05/11/2015 - 11:53 | 6081106 HowdyDoody
HowdyDoody's picture

I hope the drivers in Uber have insurance which covers their commercial use of the vehicle.

Mon, 05/11/2015 - 12:19 | 6081218 adr
adr's picture

99% of Uber drivers have no clue that their insurance isn't valid when they are driving for Uber. They also have no clue that if the insurance company finds out that they have been using their vehicle for commercial purposes their policy will be cancelled immediately. Because they don't have insurance covering their vehicle it is actually illegal for them to be driving their car while working for Uber. Any cop could pull over any Uber or Lift driver at any time and not only give them a few massive tickets but cart them off to jail and impound their car being well within the law to do so.

An accident involving an Uber driver is an ambulance chaser's wet dream. As soon as Uber goes public they will be hit with thousands of million dollar lawsuits within days. There is no money to go after now, but as soon as that stock starts flowing the floodgates will open.

Mon, 05/11/2015 - 12:25 | 6081241 Freddie
Freddie's picture

Anyone here know what Uber drivers make?  I have seen lots of banner videos on youtube and I could make some extra cash.  

Mon, 05/11/2015 - 12:38 | 6081292 MonetaryApostate
MonetaryApostate's picture

This only leads me to believe that someone is manipulating the markets &/or using FALSE ACCOUNTING...

Mon, 05/11/2015 - 12:44 | 6081315 Hype Alert
Hype Alert's picture

So when does UBER get into the Dow?  Or did I miss it already?

Mon, 05/11/2015 - 13:00 | 6081392 Son of Loki
Son of Loki's picture

" They didn't build that! "

Mon, 05/11/2015 - 13:16 | 6081455 adr
adr's picture

There was a great writeup how an Uber driver can clear about $3.00 an hour after you take into account commercial insurance, to stay legal, along with gas and maintenance costs.

I did forget to say that Uber does have insurance that covers you if you get in an accident on the way to pick up a fare, but it is an at fault policy that only covers whoever you hit and only up to $10,000 in coverage. Once the fare is in your car, you are fucked if you don't have a commercial policy and get into an accident.

Mon, 05/11/2015 - 15:55 | 6082223 Freddie
Freddie's picture

But can't you get a hand job from female riders like the Egyptian Uber driver in Orlando?  He said the woman was dressed in a way that made her fair game.

Mon, 05/11/2015 - 13:44 | 6081568 Homegrown
Homegrown's picture

It's ironic that while I'm reading this article there is a Lyft ad right there ---> right here on ZH...

"Make up to $35/hr." 

Good luck with that, you'll prolly do better to follow the guy that makes $7k/month from his mom's basement... Hell, he's right here on ZH too!

Mon, 05/11/2015 - 13:02 | 6081400 Binko
Binko's picture

I've mentioned something similar to people who do pizza delivery using their own cars. They are universally clueless about the fact that they only have insurance for personal use of the vehicle and not for commercial use. They get angry if quizzed about it. I'm sympathetic to a point because they are in a bind; they need the crappy job while their employers are scumbags to not provide delivery vehicles.

Mon, 05/11/2015 - 13:28 | 6081512 adr
adr's picture

One of the first questions I am always asked by insurance agents is if I use my vehicle for commercial purposes. People get confused with using a vehicle for work and using it for commerical use. If you are transporting an item that you recieve direct income from, that is commerical use.

A pizza driver could try to claim that the pizza shop is the one making money from the direct delivery of the pizza, but if they reiceve a tip for the delivery then it is commercial use of the vehicle.

Mon, 05/11/2015 - 14:16 | 6081741 Jack Burton
Jack Burton's picture

Air B&B is somewhat similar to Uber in theory. People with rooms, apartments or homes to rent out by the night can join and list on their internet site. Along with membership comes a 1 million dollar insurance policy for renter and rentee. A recent case of a totally destoryed Air B&B rented house was settled when Air B&B's insurance paid out in full for damages.

I do not know Uber at all. But they can't drive a customer without an insurance carrier. Nobody would drive, nobody would ride. Like I said, I do not know. But I would assume that Uber operates like Air B&B, with membership providing a huge insurance coverage.

As for cops, can they arrest you for having a passanger? I give people rides all the time, I even lend my car out if a friend needs it. Uber is peer to peer via a connecting website. There is just a person needing a ride, and someone willing to let them ride with them. Being peer to peer, you would not even have to tell the law this was a paid transaction.

If Uber is so big, they must have the legal and insurance ducks in a row. Air B&B also reports landlords income to the IRS and State tax authorities.

Mon, 05/11/2015 - 12:58 | 6081250 Multi
Multi's picture

I for one like Uber. The concept, not the stock (I don't like to pay for overpriced stuff).

Too bad the Mafias around the world won't give too much room to such schemes. They won't give up easily on their racketing income from taxi licenses.

Mon, 05/11/2015 - 13:23 | 6081491 adr
adr's picture

I don't have a problem with the base concept of Uber either. However I do have a problem with operating outside the law and skirting very serious issues. I also have a huge problem with valuing a company that has never made money and never will with a $50 billion valuation just so some Wall Street fucks can make money. If Uber could operate within the law and make money for its drivers and itself without resorting to the Wall Street bubble scam apparatus, then fine.

It is the same thing with Tesla dealerships. There are franchise laws that prevent manufacturing from operating their own dealerships. Just because Tesla makes electric cars that should not grant them an exemption. If the laws are changed, fine, but until then they should not be allowed to run a direct sales model.

Mon, 05/11/2015 - 18:41 | 6082858 sun tzu
sun tzu's picture

I have no problem with what they're doing, but they need to let the fares know if they have commercial insurance just in case there's an accident. Who will pay if the fare is seriously injured or killed in an accident? We expect taxis, delivery companies, and long haul trucks to have commercial insurance. Uber is a business. If they don't have commercial insurance, it should be advertised and insurance companies should be made aware too. 

Mon, 05/11/2015 - 11:55 | 6081118 Id fight Gandhi
Id fight Gandhi's picture

They make nothing. Just skim hefty fees, yet no profit, for being an unlicensed taxi service.

Their business model has a low barrier of entry and face legal issues left and right.

New normal, where half baked ideas are worth billions of paper "worth."

Mon, 05/11/2015 - 15:05 | 6081983 Vylahkinnen
Vylahkinnen's picture

Well, I have just invented a time machine. Just on paper for now. But you would look very foolish, if you wouldn't invest now. Just imagine the pale and envious look on the faces of your biggest investment rivals. This might be the biggest investment opportunity in the 21th century and you can have a seat in the front row for a bargain. All I am asking for is ONE BILLION DOLLAR. It's a steal.

Mon, 05/11/2015 - 12:14 | 6081200 Ramesees
Ramesees's picture

I am much more likely to purchase Uber's goods/services than I am Ford's goods/services.  Is there anyone that feels differently? 

Mon, 05/11/2015 - 12:31 | 6081259 CrazyCooter
CrazyCooter's picture

I think the point at issue is simply the valuation of Uber.

Regards,

Cooter

Mon, 05/11/2015 - 12:53 | 6081368 Ramesees
Ramesees's picture

Yes, and I'm saying:

1) nobody knows what Uber's valuation ought to be because it's private, so people are basing their opinions of valuation on anecdotes and opinions. 

2) Since we're basing our opinions of Uber's valuation on anecdotes and opinions, my anecdotal opinion is that I'm much more likely to use Uber than almost any of the other companies on that list, including Ford. 

 

Mon, 05/11/2015 - 13:17 | 6081450 Multi
Multi's picture

Please, engage the thing north your spine.

Uber is, kind of, a taxi service. Think of a taxi company running the taxis in your town. Would you pay more for THAT company than for the company that builds their cabs (and a lot of other cars too)? Well, you'll have to run the numbers but I have a strong gut feeling that their revenue are orders of magnitud away (not in favor of Uber, just in case).

By the way, I like Uber. Though I also like Mercs but I won't pay $1,000,000 for one.

Mon, 05/11/2015 - 19:18 | 6082960 sun tzu
sun tzu's picture

Not only that, but taxi companies are llicensed, so there is a barrier to entry. Uber has nothing but their name. 

Mon, 05/11/2015 - 12:47 | 6081334 bcups
bcups's picture

One simple question:

What are they doing that requires a $10b/year burn rate?

Mon, 05/11/2015 - 13:16 | 6081457 OldPhart
OldPhart's picture

A company that is comprised of basically one computer...

Highly recommended to me by the shoe shine kid.

Mon, 05/11/2015 - 11:51 | 6081088 Mercury
Mercury's picture

Please.

How much you want to bet the average Uber driver has no fucking idea what his average cost per mile driven is?

 

Uber is hoping someone doesn't come up with an app for that between here and the IPO.

Mon, 05/11/2015 - 11:49 | 6081090 Dr. Engali
Dr. Engali's picture

To be fair, GM isn't worth a shit.

Mon, 05/11/2015 - 11:52 | 6081101 knukles
knukles's picture

Now you're fucked.  The NiSUchAgOny heard that and you'll be spending innumerable nights tied to the headboard and frame in the Lincoln bedroom. 

Mon, 05/11/2015 - 11:54 | 6081111 kowalli
kowalli's picture

Hillary will rename it to "freeshit bedroom"

Mon, 05/11/2015 - 11:49 | 6081092 praps
praps's picture

All the stock buy back money has to go somewhere.

Mon, 05/11/2015 - 11:54 | 6081114 Dixie Flatline
Dixie Flatline's picture
Yes, Uber Sucks, And Let Me Explain Why

I don't necessarily agree with the author's viewpoint, but he does express some issues to consider.

Mon, 05/11/2015 - 11:55 | 6081119 unionbroker
unionbroker's picture

i just invented GOOBER a gray market cab hailing company i am doing my first raise at a billion dollar valuation ,anybody in? Its cheaper than Uber and just as stupid

Mon, 05/11/2015 - 20:19 | 6083116 Cityzerosix
Cityzerosix's picture

How about GROPER.

Mon, 05/11/2015 - 12:03 | 6081157 RobD
RobD's picture

San Jose is a dump too, fooking crazy.

Mon, 05/11/2015 - 11:59 | 6081138 homebody
homebody's picture

F**king brilliant - no store, no stock, no equipment, no staff, ... just suckers lined up for miles.

 

Wait until the robberies and rapes start happening in so called cabs. 

Mon, 05/11/2015 - 12:05 | 6081148 Dixie Flatline
Dixie Flatline's picture

Wait until the robberies and rapes start happening in so called cabs. 

Already happening.

An Uber driver was arrested on battery charges after Orlando police say he put his hand down his female passenger's blouse.

 

Police said the victim's boyfriend requested an Uber driver to pick up his girlfriend from the Ale House in Winter Park on Sept. 19.

Ramy Botros, 28, picked up the victim in a silver Honda Civic and drove around aimlessly, making comments about how attractive and pretty the victim looked, according to the report.

Botros then stopped the vehicle and placed his hand inside the victim's blouse, according to the report. Police said the victim demanded Botros stop touching her and that he continue to the destination, police said.

She said didn't want to upset Botros, so she pretended as though everything was fine. When they arrived at the destination, Botros gave the victim a business card and the victim immediately notified police.

The victim told police she had a recording from her phone when Botros touched her inappropriately because she had read several things about Uber drivers sexually battering women, according to the report. Police are not releasing that recording as of Thursday evening.

Police said during questioning, Botros told detectives in his country of Egypt if a woman dresses a certain way, “they are asking for that."

Botros was arrested and booked into the Orange County Jail.

Orlando police are warning customers to be wary of ride-sharing companies like Uber, which they say is not properly permitted with the city.

http://www.clickorlando.com/news/uber-driver-arrested-after-putting-hand...

 

EDIT: Just search "uber driver arrested"

Mon, 05/11/2015 - 12:10 | 6081182 SERReal1
SERReal1's picture

Priceless....

Mon, 05/11/2015 - 12:10 | 6081185 City_Of_Champyinz
City_Of_Champyinz's picture

Another 3rd world scumbag and follower of the religion of peace.  Just what this country needs less of. 

Mon, 05/11/2015 - 12:20 | 6081224 p00k1e
p00k1e's picture

‘pretended’

Like, she couldn’t open the door and get out of the car? 

She wanted it.  He boyfriend guilted her after so she’s lying.   

Mon, 05/11/2015 - 12:49 | 6081351 Handful of Dust
Handful of Dust's picture

I bet she was a "Hot Potato."

 

 

Mon, 05/11/2015 - 14:04 | 6081668 Never One Roach
Never One Roach's picture

" She asked for it."

Mon, 05/11/2015 - 12:01 | 6081147 RobD
RobD's picture

What's up with the "market" today? Did the HFTs take the day off or something?

Mon, 05/11/2015 - 12:03 | 6081152 williambanzai7
williambanzai7's picture

They are facing typhoon winds in China. No China story, no Goldman hopium gas.

Mon, 05/11/2015 - 13:46 | 6081153 ptoemmes
ptoemmes's picture

Well...on the local ground they certainly act like a $50B big money backed - I'm looking at you Google and Goldman - corrupt machine.

Don't give a whit about local laws, ordinances, etc.  Contribute $$$ various ways to try to get favorable regulations/laws at the local and state level.  Florida State - failed so far.

In the meantime just break existing laws/regulations which, while Uber sometimes have their driver's back, usually the shit flows on the Uber driver more than anyone.

I do have a dog in this hunt, but while I agree that local taxi-monoploy and car service rules and regulations need to be fixed (Florida) and I do not "fear' Uber wrt my customer base, I thought this was a nation of laws...oh wait.

 

 

Mon, 05/11/2015 - 12:06 | 6081160 SERReal1
SERReal1's picture

Damn, I am in the wrong business. I need to start coming up with businesses that make nothing, have no profits, financials, and sell nothing and make a cool few billion. Selling and/or making an actual product is for chumps!

Mon, 05/11/2015 - 12:18 | 6081212 astoriajoe
astoriajoe's picture

I don't know about you, but maybe GM just needs to start their own car-ride business. I'm sure the Obama administration can help them with the coding for the website. They can roll it out nationwide, and make it mandatory.

Mon, 05/11/2015 - 12:31 | 6081257 SERReal1
SERReal1's picture

I just spit coffee all over my computer thanks to your comment. Too funny.

Mon, 05/11/2015 - 12:06 | 6081164 RobD
RobD's picture

Uber got shut down by the courts/cabbie companies here in Nevada. The politicos in Carson City tried to pass a law to include Uber under the cabbie laws and extract 2% off the top but I think it failed.

Mon, 05/11/2015 - 12:07 | 6081169 SERReal1
SERReal1's picture

I remember when they shut Uber down, but didn't they end up letting Uber run here in the Silver State? I thought I heard that somewhere but I could be wrong.

Mon, 05/11/2015 - 12:15 | 6081203 RobD
RobD's picture

Nope, pretty sure it is still dead.

Mon, 05/11/2015 - 12:32 | 6081267 SERReal1
SERReal1's picture

That's right. They had proposed SB439 to regulate ride sharing services and make them legal (henced taxed) but it was shot down.

Mon, 05/11/2015 - 12:08 | 6081172 Billy Sol Estes
Billy Sol Estes's picture

Ah yes Oxy, they have a fine company history.

Mon, 05/11/2015 - 12:11 | 6081178 yogibear
yogibear's picture

Inflate stocks far greater than anyone can imagine.

With Federal Reserve printed bubble money.

Market makers and Fund managers need more ideas for IPOs. 

Throw hundreds of billions into worthless/ money losing companies.

 

Mon, 05/11/2015 - 12:09 | 6081180 Max Cynical
Max Cynical's picture

What company could spend money that fast? They developed an alternative way to hail a taxi. They don't own any assets? WTF? 

Mon, 05/11/2015 - 12:11 | 6081186 SERReal1
SERReal1's picture

Assets don't matter. Do you think this is the 1980's or somthing?

Mon, 05/11/2015 - 12:10 | 6081184 mastersnark
mastersnark's picture

A taxi company is tops in America? I'm sure there is a very good illustration in there somewhere..

Mon, 05/11/2015 - 12:25 | 6081239 adr
adr's picture

They aren't a Taxi company, they are a social media app based hookup machine. If WhatsApp can be worth billions, why can't any app?

yes, it's pure bullshit that truly isn't worth ten cents. But this is DOTCOM 2.0 THE MEGA SEQUEL!!!!!

 

Mon, 05/11/2015 - 13:51 | 6081603 BeerMe
BeerMe's picture

.com 2.0 is right

Come up with some mildly useless app and get ready for an IPO.

Mon, 05/11/2015 - 12:13 | 6081197 yogibear
yogibear's picture

"They don't own any assets? WTF?"

Who needs assets or profits in this Federal Reserve induced financial bubble-world?

Mon, 05/11/2015 - 12:15 | 6081202 SpanishGoop
SpanishGoop's picture

And we can go "Uber,Uber,Uber" that.

 

Mon, 05/11/2015 - 12:39 | 6081299 dogismycopilot
dogismycopilot's picture

That article makes a good point about the insurance requirements. I expect most Uber drivers have one asset to go after if they maim you in a car wreck....their car. And yes, most insurance companies will simply not pay if they find your Uber driver was moonlighting as a Taxi.

that is some scary shit ot think of

Mon, 05/11/2015 - 12:47 | 6081329 Handful of Dust
Handful of Dust's picture

 

 

Since about 30% of Texas drives DO NOT have car insurance, so if one totals your car/paralyzes you/or otherwise severely crimps your brain, you're screwed.

Mon, 05/11/2015 - 12:45 | 6081318 Handful of Dust
Handful of Dust's picture

Look at all the impotant stuff they manufacture; it's no wonder they're soaring ....

 

...mmm...wait a sec....

Mon, 05/11/2015 - 13:25 | 6081499 SweetDoug
SweetDoug's picture

'
'
'UBER is a company that derives its revenue stream from the people using its app to secure customers & make revenue.

If those people aren't making money, then neither will UBER, eventually.

Here's the best review of that payment system.

Philadelphia journalist went undercover as an Uber driver — here's how much she made
http://www.businessinsider.com/uber-driver-earnings-2015-5

She writes:

Driving for UberX isn't the worst-paying job I've ever had. I made less scooping ice cream as a 15-year-old, if you don't adjust for inflation. If I worked 10 hours a day, six days a week with one week off, I'd net almost $30,000 a year before taxes.

But if I wanted to net that $90,000 a year figure that so many passengers asked about, I would only have to work, let's see ...

27 hours a day, 365 days a year.

---------------------------------------------------------------------------------------------------------

UBER gives me the stench of 1999-2000 all ova again.

•?•
V-V

Mon, 05/11/2015 - 13:40 | 6081546 geekz_rule
geekz_rule's picture

this isnt Uber's fault, or even silicon valley. this is about the cash Mule anything like it is.. for fucking wall st banksters.

thats all. like everything else.. financialization bitchez..

someone's getting that money.. and it aint you. rip and run style. pump n dump same ol same ol

 

Mon, 05/11/2015 - 14:02 | 6081657 kchrisc
kchrisc's picture

All I have to say about Uber's miraculous rise against the various corrupt municipal governments around the DC US, and Uber's stock valuation is: Kalanick

If he were not an Amongst, what would have been the odds?

Someone is obviously pulling the strings of those corrupt governments so as to clear the way for Uber's dramatic rise, and massive valuation. And who is it that controls these governments and their financial life-blood access to fiat-loans in the DC US?

Liberty is a demand. Tyranny is submission..

 

"I'd look under the rug further, but I can already smell what I need to know."

Mon, 05/11/2015 - 14:25 | 6081777 Jack Burton
Jack Burton's picture

Uber operates with a feedback and ratings system. Like Air B&B.

Every driver gets rated by the customer for every ride. This you can check on the drivers listing page.

Every rider is rated by the drivers, no driver need give a lift to anyone whose rating they do not like.

Do you know how powerful being reviewed is? If I am a customer, I would read my drivers reviews before riding. If they are all good, then I would ride. If even one review was bad, then no.

As a Uber driver, you need NOT give anyone a ride whose reviews you do not like.

A taxi company does not get individual reviews for drivers and riders. Drivers take rides with no check, rides get drivers with no check.

You see now how Uber is different?  I don't drive or use Uber. But I know how Air B&B works by reviews. A renter need not rent to anyone whose reviews they don't like.

Mon, 05/11/2015 - 14:45 | 6081864 commishbob
commishbob's picture

@JackBurton - if you ever use Uber it's really hard to find a driver with a "perfect" (5-star) rating. I had one woman who didn't speak English (she spoke only the language of the religion of peace) who gave me a bad rating and I still to this day have no idea why, as I took the fastest, most direct route and didn't say a word. Every other trip I ever gave when I drove for them was 5-stars. Uber wouldn't tell me why either, citing privacy. Which is like when a boss gives you a bad performance review but won't tell you what you did wrong or how to correct it.

Mon, 05/11/2015 - 14:39 | 6081838 commishbob
commishbob's picture

As someone who's done some driving for uber on the side in the past I can say that it *can* be worth it...but only for special events and the like when they use "surge pricing." For example, I once made $250 in 3 hours on a New Year's Eve when my gf was bartending anyway.

You have to be in the right place at the right time (such as the entertainment district of a large city on New Year's Eve). For your "normal, everyday" rides, it really isn't worth it to drive when you factor in the cost of gas, depreciation on your car, cost per mile etc. The insurance/legal issues are a whole other beast entirely. 

As far as their business model, it's brilliant: no vehicles to purchase, no maintenance for the non-existent vehicles, super-low overhead, etc. No way for traditional transportation companies to compete on cost structure alone. 20% cut of the fare. Replicate that enough times and you can make some $$$.

It sure as heck ain't worth $50bb tho. 

Mon, 05/11/2015 - 15:13 | 6082035 Ray Donovan
Ray Donovan's picture

I have drove for Uber since August of last year, I'm pretty much retired at this point.  It's the most successful pyramid scheme of all time.  Our mileage rates were at $1.40 a mile.  It was a tad low and people never complained, "still cheaper and better than a taxi!" is all I heard.  Few months later the rates went down to $1.  I hung in there for big event nights and surges.

This past winter they lowered them to .70 in Louisville.  That is before Uber's 20% cut, so you were looking at .56 a mile, which is the stardard deduction to operate a vehicle from the IRS.  It's a joke, we're back up to $1 a mile and trust me that's not worht it when you figure in gas, wear & tear, dealing with drunk and the whole insurance situation.

I will say it is a great idea. Passengers love it and it is creating jobs, why they don't up the rates more I don't know, guess they are trying to wipe out taxis and Lyft.  The drivers take on all the costs and risks and Uber sits back and send out shitty emails saying how you are going to earn more yet decrease your rates.  It will all come to a head, there are several lawsuits out against them right now. 

What to watch for though is package delivery with amazon.  They pull that off and UPS is going to start to get nervous. 

 

Mon, 05/11/2015 - 15:14 | 6082043 Ray Donovan
Ray Donovan's picture

I have drove for Uber since August of last year, I'm pretty much retired at this point.  It's the most successful pyramid scheme of all time. All they do is hire more and more drivers while everyone else last a month or two and then they give up. They are always giving out bonuses for referrals. Our mileage rates were at $1.40 a mile.  It was a tad low and people never complained, "still cheaper and better than a taxi!" is all I heard.  Few months later the rates went down to $1.  I hung in there for big event nights and surges.

This past winter they lowered them to .70 in Louisville.  That is before Uber's 20% cut, so you were looking at .56 a mile, which is the stardard deduction to operate a vehicle from the IRS.  It's a joke, we're back up to $1 a mile and trust me that's not worht it when you figure in gas, wear & tear, dealing with drunk and the whole insurance situation.

I will say it is a great idea. Passengers love it and it is creating jobs, why they don't up the rates more I don't know, guess they are trying to wipe out taxis and Lyft.  The drivers take on all the costs and risks and Uber sits back and send out shitty emails saying how you are going to earn more yet decrease your rates.  It will all come to a head, there are several lawsuits out against them right now. 

What to watch for though is package delivery with amazon.  They pull that off and UPS is going to start to get nervous. 

 

Mon, 05/11/2015 - 15:58 | 6082240 Freddie
Freddie's picture

Isn't Louisville kind of a shit hole to drive around with college ball team fanbois and thugs plus retards?

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