Uber freight is terrible!!! Beware

Power Only? Are they - Convoy- leasing trailers?

 

This definitely isn't the norm, Uber Freight has been getting murdered pretty much since inception, I'm not sure if they've ever been profitable. As I mentioned earlier this thread they've lost over $150 million in the last year alone. They definitely aren't making the 65% margins that you suggest in this post.

 

In another week Uber and Lyft will lose their biggest ride sharing client, California. That new AB 5 law will require them to make drivers employees of the company, and they aren't willing to do it. Since ride sharing and freight hauling are both part of the parent company, they may close the freight part of the company. They lost 2.6 billion dollars in the first quarter of this year, and over 3 billion in the second quarter.

 

I'm not really understanding what you guys are saying. I mean, if they are loosing billions then how are they still in business? Unless by loss you guys simply mean less profit then the previous year. Covid certainly hurts ride sharing stuff.

Any specific sources that show they are hemmoriging money and plummeting to bankruptcy?

 

There are numerous companies like Uber, that have never made a profit. Another one that comes to mind is Amazon. As long as their stock prices remain high and people are buying it, they have enough cash on hand to offset the losses. But Uber took a pretty big hit on their stock a couple weeks ago, so stock traders are losing faith and the price is falling. When they can no longer do business in California, expect to see their value fall quickly.

The Owners of Uber Stock Should Be Worried About Bankruptcy


Uber Stock Is Falling After Earnings Reveal a Larger Than Expected Loss

 

To piggyback on Steve's post, below is a link to UBERs Quarter 2 earnings for this year, they lost around $800 million as a company and the UBER Freight portion of that was about $49 million lost. And when we say lost $800 million we mean they their costs were $800 million dollars higher than what they charged their customers.

Uber Technologies, Inc. - Uber Announces Results for Second Quarter 2020

One quick note in regards to Steve's comment about Amazon not being profitable, that used to be the case for a long time,but they are actually really profitable now, I think they made something like 7 or 8 billion in profit in the last rolling 12 months.

https://s2.q4cdn.com/299287126/files/doc_financials/2020/q2/Q2-2020-Amazon-Earnings-Release.pdf

 

I was thinking Tesla, but typed Amazon. Yes Amazon is now making a profit. In fact they're really making a lot since the Covid lock down.

 

Not really. Not unless they are continually creating and selling more stock, which would just drive the price down. You don't buy a company's stock from the company itself. You buy it on an exchange from someone else who has it and wants to sell it. The company doesn't profit from the sale of it's stock after the initial sale.

 

Wow, that's news to me. Of course you're assuming that the company owns none of its own stock, which is never the case. Companies typically hold out treasury shares for employees 401k plans and other purposes. The treasury shares have no voting rights, but they are worth whatever the market value is of the stock. Favorable stock prices also allow companies to pay off long term debt at lower interest rates as well as borrow additional capital at lower rates. Typically a very high percentage of stock (at least 51% to avoid a takeover) in publicly traded companies is owned by that company in treasury shares.

 

Doesn't that assume that all stock has been sold and the company owns none of it? I mean, if the company created 1 million shares but only sold off 250,000 shares, the CEO or whoever would still have 750,000 shares to slowly sell off to cover the companies expenses until they manage to become profitable.

(Just random guessing though)