I jumped in to read @xolubi reference but it did not support his premise on WhatsApp revenue being NET POSITIVE. What I had noted earlier (which still stands) is that WhatsApp and co spent more than they make. From accounting point of view, that is operational loss.
VC-speak, that is not a problem…but
Since you are stubborn, lol… Here you go. They had more than how much they had raised in total in the bank.
You are encouraging us to divert this discussion from OP’s intent. 
My point (which is as true as your point about WhatsApp having money in the bank at the point of FB acquisition) is that WhatsApp lost more money each month than it made each month of its operation.
Uber’s current case is the same, as they too have " insurance money" up to $$$B in the bank.
“An operational loss =bleeding cash” based on my logic.
The intent wasn’t to derail the thread but to correct misinformation - others would read your post and think it was true about WhatsApp. However, I have realized you are the type to stick to your guns even when proven wrong.
I’m not sure how “aggressive marketing” equates bleeding (which is used loosely here). Uber has been know to aggressively push into new markets and as @akindolu mentioned [quote=“akindolu, post:2, topic:6339”]
Nigeria is just generally tough for consumer services
[/quote] So uber needs to to reach liquidity for it to get to a defensive position because right now it’s still in a pretty vulnerable position in the market.
Uber is faced with big initial challenges and similar opportunities because it runs a double-sided marketplaces. As we know the first marketplace to reach liquidity always win, making liquidity the most important factor here.
This is simple network effects and Uber needs to be the leader here because the leader in any business driven by network effects is always going to be able to gain momentum and corner the market from the rest of the players.
Uber Nigeria is aggressive because
They’re still in “mobilize the network” stage, so it’s all about driving scale and the investors that keep pouring money into it supports that strategy.
This statement is wrong uber is currently profitable in their most developed markets. Thats hundred of cities are now profitable for uber.
Excerpt from an article I wrote today on using Uber in Lagos which touched on surge pricing
Sorry typed this on my phone
It continues to distress me that the plebes are allowed to use Twitter with us. I would happily pay a monthly fee to get rid of the Nigerian hoi polloi. 
Your statement about his statement being wrong is wrong. 
You referenced what Travis said (and Travis has been known to exaggerate Uber’s revenues).
Take a look at this article showing Uber’s leaked internal financial statements, and tell me where you see the profit.
Oga, you didn’t tell us your pick up and drop off point.
@SkweiRd yes, it’s a perception thing, but the perception is probably right.
The last time I took an uber, I paid 2350 Naira from Dolphin Extension to Mende, Maryland. This is a route I’m on at least twice a week. When I decide to take a yellow taxi, I pay between 1,200 to 1,500.
Now, what does an extra 800 Naira get me on an uber? I don’t move an inch, I get picked up in a clean and comfortable whip, I save time, I can get to my destination without cash, and lastly, safety.
You might say that extra 800 Naira is worth it, but multiply that by 8 times in a month and you have 6,400, which is a lot of money to the average Lagosian. I don’t even want to tell you what percentage of my salary that it is. Remember, this a route I’m on only twice a week, I still go to other places.
If we look at the cost per ride, we can say it’s not expensive, but as a major means of getting around, it is expensive.
The average Lagosian doesn’t take taxis often, we dey hop danfos.
If you read my last comment on this topic, you might see why I disagree with you.
The major means of getting around for the average Lagosian is by bus, very few use taxis regularly and the rest own cars. Who is Uber’s target market, the guy who hates taking buses but isn’t making enough money to take taxis or buy a car or the guy who takes taxis regularly? If we go with the latter, my question to you is, how big is that market?
Uber isnt bleeding, its using aggressive Growth hacks for Customer Acquisition and its as simple as that.
Free cupcakes reminds you it was brought by a Taxi on Demand and hence you can send same to friends or get on a ride across the city.
Uberblack was launched as a Global initiative but like it has always been Said, know your local market and what applies, Uberblack must have been bringing lower revenue and they scrapped that in favour of Select wich is a basic hybrid of UberX and Black, the cars in this range though are what im yet to see or why if its the Same Corolla they are 500 naira more expensive.
Uber being online in an offline dominated transport industry would have just been kidding itself, it has to create brand awareness and talk to Estate Unions and other clusters or promote to companies to get Acquisition.
Emails come mostly weekend.
Relaxing UberX fleet helps in providing supply n reducing price rates to get demand increasing revenue, its a simple Strategy
After EasyTaxi Exit, a void has been left for Uber to pick up, Surge pricing is the only thing we need to kill or get a Startup that can be transparent enough in its pricing model.
How much supply will reduce the rates, like I said earlier, I think they are focusing too much on supply.
How many times have you wanted to use an uber and were thrown off by the wait time?
The leak financial statement was from 2013 nad 2014. This is 2016.
If you have a fleet of 700 cars waiting for customers, you would have to go out and get customers…to attract those customers you would have to reduce cost hence your marketing strategy will be such to provide freebies as possible to attract customers reducing rates.
You cannot have 2016 financial statements for any company at the moment.
How does that takeaway from him saying they’re profitable in some of their ‘most developed markets’? Forget the fact we’re a few days away from completing Q2 2016 and they were projected to reach full profitability in North America in Q2 2016. Your counter argument is from a 2 years old financial statement?
You look at company’s (in this case, Uber’s) financial health as a whole, not how it is faring in some markets.
One year actually, as we’re in the 2016 financial year.
Projections are no different from campaign promises.
Have they acheived the said profitability?
The fact remains Uber is not yet profitable as a company. It doesn’t matter (in the big picture) if their ROI in the founder’s village is 100%.
The link you provided originally was all talk, and no numbers from a founder who is known to make extremely generous revenue statements.
From the article:
Travis Kalanick, chief executive, told the FT that Uber is making money in North America, Australia and in its Europe, Middle East and Africa region, on a basis that excludes interest and tax.
That’s a nice way of saying “we’re losing money”. What matters is what’s left (or in their case, what you’re losing) after interests & tax (net profit/loss), not EBIT. Like we say: “I get am before no be property”.
Mr Kalanick said that Uber China is funded through Uber’s profits, Uber’s own investors and some backers who invest directly in Uber China.
I.e. they’re funded by debt, not profits/revenue (which would be the case in situations of profitability).
“We are number two in China, which means that we still have a ways to go,” Mr Kalanick said. “But we are putting everything on the field.”
Long is an understatement given the market share stats as at 2015:
http://blogs-images.forbes.com/liyanchen/files/2015/09/0908_uber-pie-chart-china_1200.jpg
So, I say again, @StolenHandle (really?), show me the numbers on which the claims of profitability are made.
I never said Uber as a whole is profitable. Admittedly, they are losing money. But Uber as a private corporation has the flexibility of breaking down revenue by market. Each market has it’s own operating teams to cover. Uber North America isn’t the same as Uber Europe or Africa.
You’re right. This is coming from a man who has made generous revenue statements but does that make this statement false. Accepting his statement of losing money in China while simultaneously ignoring same on profitability is ‘cherry picking’
Uber and Uber China are separate entities. Admittedly, they’re losing money in China and I don’t think that’s a market they are going to ever win. Based on my earlier statement regarding liquidity.
Yes they are still being funded by debt. They are a privately funded organization, asking me for numbers is a mute point. I have no more insights than you on their financials.
Lol. Yes. It’s real.
Uber is a whole. Their cherry-picking (or slicing & dicing) is just a way to make themselves look good, in my opinion.
Not really (financially/business-wise), but legally yes, so you have a point. If Uber China burns & crashes, guess what balance sheet that loss will show up on?
True, which makes access to (audited) financial information hard to come by. And given Travis’ history with the numbers, I kind of take all his revenue statements at face value, until I see the numbers backing it.
With all that being said, I do not necessarily subscribe to the idea that they are “bleeding” as the topic says, as they are currently in growth stage & therefore losses are to be expected, and are not a sign of failure (in and of themselves).
But raising money like a guy who just crossed the Sahara would raise water calls for concern.
I think Ubers approach was all wrong from day one.Bringing a western prototype, concept etc in full into Lagos without any major change was always going to be woeful.
I was lucky to be present in a meeting around April lastyear(not sure) where someone (no name calling) who’s heavily involved in Ubers coming to Lagos stated clearly that Uber wasn’t meeting his expectations.
Someone else in the room had retorted it was expected simply 'cause Uber wasn’t mainstream in Lagos yet.I wouldn’t know how much that has changed.
As regards supply,Uber has got huge supplies.I know of someone who recently as early as last month,placed 50 new Cars on Uber,wouldn’t know if he’s had any ROI as of a few weeks later,but obviously his expectation must be high to do that.
Supply with Uber I believe has been spurred by Ubers PR,drivers for example are told they can earn as much as N300k monthly,after COS.(wouldn’t know how realistic that is).
The problem however is demand.Is Uber actually cheaper than the everyday yellow cabs?
How big is the Taxi market in Nigeria,is it even as big as people think it is?
I know people actually think it is.
Really?! Lol
