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Uber makes huge loss after China exit

TaiShang

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Uber makes huge loss after China exit
(CRI Online) December 28, 2016

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That figure refers to a loss in just one financial quarter of the year, meaning that the company’s full year loss could be in the region of over $2 billion.

Many Uber users will be surprised to learn that the company is not currently profitable. After all, the firm has low overheads and is effectively just a middle-man, connecting a driver with a customer, and taking a percentage fee for this service.

However, as Uber has needed to compete with incumbent taxi firms in cities the World over, it has often effectively subsidized rides via incentives to customers. It has also invested heavily in expansion and in driverless technology.

In August, it’s reported that Uber would merge its Chinese business with local rival Didi in a deal worth as much as $35 billion.

The two companies had been involved in a costly battle against each other, and Didi invested significantly in the worldwide Uber company as part of the deal.

That Uber has been unprofitable despite that deal will undoubtedly be received with caution by investors.
 
The so-called internet economics 101 is:

(1) Write some random APP
(2) Throw free goodie with your APP to the customers to boost your "market" pie
(3) Use your "pie" chart to get more money from investors before you burn out of your money
(4) Burn more money through (2)-(3) until (5)
(5) You get IPO from some stock market with loosen IPO rule like the NASDAQ or the one in London.
(6) Let the sucker (oops, the stock investors) to buy your company's share, or the excuse of a joke, and everyone else become rich overnight thanks to the suckers' investment or donation.

So nowadays, instead of robbing the customers, the company like to rob the investors.
 
Uber was loosing $Billion just competing with Didi in China. It's business in China was overvalued based on subsidies from it's US operation.

This was Uber's first, real, fight. Didi had been through this with the other Chinese company it fought before merging with it prior to Uber's entry.

China is special, it's 1.3 Billion population, even if they all don't use uber the shear amount of potential riders makes it compelling.

Uber isn't Public because it'll never earn any investment based on it's current model of being a middleman with it's current books.

So nowadays, instead of robbing the customers, the company like to
rob the investors.

Either way honest people get screwed.
 
what? there are publicly traded companies in US exchanges with negative operating margins and losses.

In order to go IPO you need to be profitable for at least 2 quarters before and pass 3 years of Auditing. Uber is using private investors.

The so-called internet economics 101 is:

(1) Write some random APP
(2) Throw free goodie with your APP to the customers to boost your "market" pie
(3) Use your "pie" chart to get more money from investors before you burn out of your money
(4) Burn more money through (2)-(3) until (5)
(5) You get IPO from some stock market with loosen IPO rule like the NASDAQ or the one in London.
(6) Let the sucker (oops, the stock investors) to buy your company's share, or the excuse of a joke, and everyone else become rich overnight thanks to the suckers' investment or donation.

So nowadays, instead of robbing the customers, the company like to rob the investors.

Or do it in China and sucker average investors who are not protected...

Ah yes that bus built to drive over traffic....The TEB's promoters promised investors 12 percent returns on their money,
Traffic-Straddling Bus a Total Scam According to Chinese State Media
http://www.popularmechanics.com/technology/infrastructure/a22203/transit-elevated-bus-scam/
 
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In order to go IPO you need to be profitable for at least 2 quarters before and pass 3 years of Auditing. Uber is using private investors.



Or do it in China and sucker average investors who are not protected...

Ah yes that bus built to drive over traffic....The TEB's promoters promised investors 12 percent returns on their money,
Traffic-Straddling Bus a Total Scam According to Chinese State Media
http://www.popularmechanics.com/technology/infrastructure/a22203/transit-elevated-bus-scam/

Uber is still at stage (3), dont worry eventually they will get IPO in one of these wild west stock market.

And yes, China has a far stricter IPO rule:
(1) Require the company remain profits for the successive 3 years right before IPO
(2) Require the company to show evidence such that they have the capabilty to remain growth in profit for the coming years after IPO
(3) Require the company to show evidence they have competitive edge over their competitors in the market.

So thats why many Chinese company have to go the wild west stock market to IPO, because they cannot do that in China.

So get real.
 
Uber is still at stage (3), dont worry eventually they will get IPO in one of these wild west stock market.

And yes, China has a far stricter IPO rule:
(1) Require the company remain profits for the successive 3 years right before IPO
(2) Require the company to show evidence such that they have the capabilty to remain growth in profit for the coming years after IPO
(3) Require the company to show evidence they have competitive edge over their competitors in the market.

So thats why many Chinese company have to go the wild west stock market to IPO, because they cannot do that in China.

So get real.

True, but you need more strict auditing requirements as companies cheat the system by cooking the books.
China makes first IPO fraud delisting
http://www.chinadaily.com.cn/business/2016-07/09/content_26025794.htm
 

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