Even though I am short UBER and LYFT, I am not quite so bearish as Naked Capitalism.
I don’t see why they can’t eventually make a bit of money by raking in 5-15% of taxi charges in return for providing dispatch services and mutual rating of both drivers and passengers that makes both the riding and working aspects safer and better.
Their shared ride system also worked pretty well, but its market isn’t as large since you need a decent density of users, which doesn’t exist in at least half of their regular market.
In other words, I think Uber creates a ton of value compared to taxis, and that amount will increase over time.
The problem, however, is they their insane overvaluation compared to the eventual value of any profits they make.
I like the chart the link in my OP because it nicely shows just how much of an outlier Uber is, having now lost more than $20 billion, compared to under $3 billion for Amazon at its lowest point.
