Tech Brew Ride Home Uber, Lyft and Bird- The Economics of Sharing with QZ's Alison Griswold
Apr 20, 2019
Alison Griswold, a Quartz reporter specializing in the sharing economy, discusses the upcoming public offerings of Uber and Lyft, shedding light on their financial struggles and unique metrics. The conversation dives into the challenges of profitability for ride-sharing companies and e-scooter services, revealing the alarming short lifespan of scooters. Griswold emphasizes the need to reassess urban transportation models as market dynamics shift, showcasing the competitive landscape between food delivery giants and the hurdles they face in sustaining their businesses.
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Uber's Financials
- Uber's financial reports reveal massive losses, except for a one-time profit in 2018 from selling international businesses.
- Their accounting methods, especially for food delivery, raise questions about profitability.
Ride Discount Accounting
- Uber's accounting for ride discounts raises controversy about actual revenue.
- Booking a $10 ride with a $5 discount as $10 or $5 revenue impacts investor perception.
Path to Profitability
- Uber and Lyft's long-term profitability depends on reducing reliance on incentives.
- They're selling services below cost, hoping for future developments like autonomous vehicles to lower prices.