Monday , December 9 2019
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Tag Archives: Uber

Uber banned in London, too

Uber keeps having a difficult time in Europe. In London, the company’s operating license has not been renewed. Transport for London, the local government body responsible for public transportation of all kinds in the British capital, found Uber to be guilty of putting passengers at risk. The reason seems not to be trivial: TFL found that “14,000 trips were taken with drivers who had faked their identity on the firm’s app”. Apparently, the company was already acting to...

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Uber Loses Another $1.2 billion, Stock Dives Again

Burning cash is easy; It’s quite flammable and just goes up in smoke. Here it is in a nutshell, the philosophy of “growth at all costs.” Uber’s total revenue increased 29% to $3.81 billion in the third quarter compared to a year earlier, the company reported this afternoon. And that’s very good revenue growth. But to get this revenue growth, the company threw everything at it that it had. So, expenses increased even faster, and the operating loss ballooned. Revenues by segment:...

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SoftBank to Book Loss of up to $7 Billion on WeWork, Uber, Others, after Showering $1.7 Billion on Neumann and Hanging his Employees Out to Dry

Whatever the heck happens, and however many billions of other people’s money your outfit burns, just make sure you walk away a billionaire. SoftBank – the Japanese conglomerate that is the late-stage investor superstar behind imploded WeWork, bleeding Uber, and others – is planning to take a $5 billion to $7 billion write-down of its investments in these startups, sources told Bloomberg. From the last round of funding in January this year, when SoftBank invested $2 billion in WeWork,...

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How the SoftBank Scheme Rips Open the Startup Bubble

This scheme worked wonders for a while but has now run into trouble, and a lot is at stake. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: The biggest force behind the startup bubble in the United States has been SoftBank Group, the Japanese publicly traded conglomerate. It has been the biggest force in driving up valuations of money-losing cash-burn machines to absurd levels. It has been the biggest force in flooding Silicon Valley, San Francisco, and many...

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When Was Peak-Insanity of the Unicorn-Startup Bubble That’s Now Imploding?

WeWork was just late to the defenestration party. Everyone – including infamously me – has been trying to pinpoint the exact moment when the magnificent startup-unicorn-bubble broke, and I mean not just broke but imploded spectacularly. All of the biggest upcoming IPOs were cancelled. All the biggest ones that got out the IPO window this year crashed and burned. And the $47-billion WeWork unicorn is now awaiting dismemberment or a bailout from Softbank after its IPO hopes were...

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THE WOLF STREET REPORT: How the SoftBank Scheme Rips Open the Tech Bubble

The biggest force behind the startup bubble in the US has been SoftBank. But the scheme has run into trouble, and a lot is at stake (12 minutes). Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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IPOs Crash & Burn, Debris Hits Housing, Office Markets

Signs are now all over Silicon Valley and San Francisco. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: OK, here’s a sobering thought. Some of the biggest IPOs in 2019 trade at record lows and all of the biggest IPOs have seen their shares plunge from their peaks. All of these companies have growing revenues but huge losses that in many cases are growing faster than revenues. But they still sport gigantic market valuations, meaning that there is a lot more...

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What can go wrong with Bitcoin, Libra and other cryptocurrencies?

with Leonidas Zelmanovitz A monumental struggle between government and market (that is, between the government and the people) could take place. Who would win? For investors, what can wrong with cryptocurrencies? In regular times, not much. First, the brokerage of crypto-assets is something new, and a body of self-regulating norms has not evolved yet. Proper protection mechanisms may be lacking also because these brokerage houses are not regulated (although that may...

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In Hilarious IPO Filing, WeWork Dreams of $3 Trillion in Revenue But Has Billions in Losses. Red-Ink Massacre to Come in 2nd Half

All in next-gen corporate speak to give you the warm & fuzzies. Meanwhile, Uber hits new low, down 24% from IPO price.  “The We Company,” as WeWork now calls itself, which is in the business of burning cash and selling “space-as-service,” has registered with the SEC to go public as soon as next month to get out through the IPO window while the getting is hopefully still good. And its S-1 filing, which became available today, depicts a company that takes corporate speak to a new...

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How Can a Company Lose $5.2 Billion on $3.2 Billion in Revenue? Uber Shows How

And rideshare revenue is stagnating. Uber’s losses have been legendary for years, ever since they were being leaked to the public while it was still a privately held company. But this takes the cake. Uber reported this evening that it had lost $5.24 billion in the quarter through June 30. The thing is, Uber reported revenues of only $3.2 billion. In other words, its net loss exceeded revenue by $2 billion. That takes some doing. Its $5.24 billion loss came on top of its $878 million...

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