THE HUMBLE LIBERTARIAN

Mind your business.

Tuesday, February 19, 2019

Did Pre-IPO Uber ‘Lose’ $1.8 Billion in 2018, Or Aggressively Invest In Its 85% Market Share Dominance?

By: Wes Messamore
CCN


Photo: Quote Catalogue

Uber posted $1.8 billion in losses for 2018, an improvement over its 2017 bottom line, a loss of $2.2 billion.

At The Drive Stephen Edelstein says, “That’s bad news for Uber as the company looks to charm investors into an initial public offering (IPO) later this year.”

Maybe. But maybe not.

Focusing on the high tech taxi company’s negative profits in 2018 might be missing the bigger picture of the value it represents over a bump in the road.

It is an understatement to say Uber has no problem making money.

The 2017 and 2018 “losses” aren’t because of bad business. They show a very well-positioned high tech monopoly looking ahead and fearlessly sacrificing profits for growth.

Uber has maintained unrivaled sales while aggressively expanding into new, similar niches to scoop up all the opportunities its scale and capabilities have created. Just like Amazon.

Not only are its sales unrivaled in mobile ride-hailing, but its annual sales growth is also far beyond anything happening in the entire tech industry right now. The only other U.S. tech company currently growing sales at this level is Boise, Idaho-based semiconductor maker Micron.

Here are some more reasons not to worry about the ride-sharing tech titan:

Read more at CCN.


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