Tuesday, April 25, 2017

The future for Uber

Uber incurred a loss of $2.2 billion (USD) in 2015 and the loss is expected to increase to $3 billion in 2016. Many observers said that their current business model is not sustainable. Some people speculated that the future for Uber is driverless cars. I do not think this is necessary.

I have confidence in the future of Uber. They have to incur an initial loss to build up their brand and market share in many cities around the world. They pay attractive incentives to get drivers to join the scheme. They keep their prices low to attract the customers.

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Yujuan said...

Too early to say whether Uber or Grab has a future. Technology changes occur before you have time to blink eyes.
But the Uber pool is great, something like the ba wang chia of the 50s and 60s, good for nostalgic reasons, and you could network and feel pulse of economy through small talk among co passengers, fare as expected is cheaper.

Once a Uber driver said he is forced to drive Uber after booted out of former job by a robot, previous job as a diver to inspect ship hulls for repairs.
So Uber has future? Jury is still out there. Consumers just make hay while sun shines.

Yujuan said...

Mr. Tan is right- there is future in Uber, it has wealthy venture capitalists' support with deep pockets, even though they lost big money in China, losses even more than the rest of their world markets combined.
Bleeding deeply in China, Uber sold out to one of its Chinese competitors, probably in ex for the latter's shares, as the Chinese Govt shows signs of regulating the new business at expense of foreigner Uber.
But no future prospects for the Uber driver, presently making good moneys, heavily subsidized by Uber. There would come a time when these venture capitalists would pull the plug, and start to squeeze their drivers, like increasing commissions, when market share is attained.
All Tech Companies act similarly, like what Goggle now squeezing their intermediaries.
The Uber driver would also made redundant by driverless robot car in near future.
Singapore is a very image conscious society, people prefer to drive Uber than to be a taxi driver, just like people prefer working for Macdonald than in a coffee shop. So Uber could attract drivers easily.
Uber is a hype, attracting many young people, but job dun have career prospects.
Taxi drivers who join the hire/ride schemes better keep their taxi driving licences, as they could resort to driving taxis the old way when circumstances change, their licences are controlled, unlike the Uber driver.
Conclusion - Uber has future, not so their drivers.

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