This comment shows no understanding of business or finance. For example, Uber prints money on non-pool rides in mature markets.
Fair enough, but if you take IBM's best product it looks like a great biz. The same goes for GE and any other currently struggling old economy biz. Even for places as colossally messed up as Deutsche Bank, you can spin the same yarn.
you’ve cited 3 examples of the opposite of a young hyper growth company.
Yes, that's true. The larger point, which I have not been able to successfully convey to you is that any venture can be made to look great when you get the pick the metrics of success.
Well the point is, let's say they have a core business that's profitable. The valuation is based on a market far larger than that profitable core business. As part of the story, the losses are coming from trying to grow the core business to a size to justify the valuation. And it's just not clear that the larger market will ever become profitable.
Oh, I'd say it's clear all right, just not in the way they might prefer.
You mean, no understanding of the profitability of one business's core model and how its earnings are being distorted by unrelated (and somewhat optional) expansion costs?
Correct, business and finance.
Not knowing one business's particulars is not the same as "not knowing business and finance".
Correct but acknowledging this doesn't let you take shots at other commenters whose tongue in cheek comments you're taking at face value.
What would Uber be valued at if all they did was offer non-pool rides in mature markets?
Fraction of current.
God forbid a comment be made that's even partially tongue-in-cheek. With all the coverage and discussion around Uber, its business model, its financial performance etc, combined with the equivalent buzz around WeWork, I think the comment was excusable and could have gone without the personal attack with regards to understanding the generic topics of business and finance.
Plot twist (fiction, probably): Same VC's backed both companies, Large section of Uber staff paying inflated prices to WeWork.
That's hardly a plot twist. See Coinbase Inc. buying Earn.com for $100m in order to pay out the VCs that invested in both.
Sam Altman’s company got bought out by friends/same VC/board members. And that’s a YC company with Sam being head of YC now I think.