Reason Uber Want To Continue Loss Hundreds of Million Dollar
Techno Article – The latest financial report shows Uber again losing US $ 708 million or about Rp9, 4 trillion in the first quarter of 2017. Although fantastic, the loss was not a problem for Uber. This can be seen from the chill of investors Uber see transportation technology company is still gain loss. Even Jason Calacanis, an early investor, is happy to see the latest financial statements.
Jason’s excuse was that Uber’s losses were smaller than the same period in the previous year.
“Revenue is up 18 percent, losses are less than a third. (Income) is 22 times greater than Snap’s earnings There is still a lot of work, but congratulations to the team @Uber,” Jason wrote on Twitter on Thursday, June 01. Losses that declined by US $ 991 million from the same period last year.
According to Bradley Tusk, an investor as well as a political consultant for Uber, the financial record Ahok News shines even more because at the same time, They are still aggressively investing around the world.
Uber More and More Burn The Money
The strategy of “burning money” as Uber does new things is new, right in the technology industry. Pouring billions of dollars without benefiting one of the ways a new company does. The fundamental question related to this strategy is, as strong as the money they have to survive. Because, the loss without ever getting this advantage could be a long time.
Investor saw the company where they were planting the money could have fared like Amazon. Amazon likes to play the same strategy with Uber is to marginalize profit goals in the early days while investing heavily for its products.
“There are many companies, Amazon for example, who invest heavily in the early years and then after 2013. I do not know if this is a Strategy, but it’s possible,” said Mike Walsh who is also investor.
Amazon, founded by Jeff Bezos, has never recorded a fortune for two decades. Bezos directs his company to focus on long-term goals by pressuring prices for consumers and switching revenues to developing new logistics and products. Bezos directs his company to focus on long-term goals by pressuring prices for consumers and switching revenues to developing new logistics and products.
As a result, Amazon now dominates the online retail sector, cloud services, online entertainment, and also releases hardware through Amazon Echo products. Amazon’s sales in 2015 reached US $ 100 billion and posted profits for the last eight quarters.
“They see what Bezos is doing Uber is one of the few companies doing the same thing,” Bradley said.
Cruel can dominate the competition if it can keep pressing its rates and invest heavily in swak driver cars in important cities and countries. After defeating the competitors then they can freely withdraw the higher tariffs to drink bigger profits.
But one thing that distinguishes Uber with Amazon is that money burned by Uber is still bigger full of Amazon. Amazon’s last loss Continues in 2014 with a value of US $ 241 million, while Uber’s loss is much greater with US $ 2.8 trillion in 2016.