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Everyone loves Uber. But can the company survive?

Everyone loves Uber. But can the company survive? It's burning cash and piling up losses at an incredible rate, expected to be -$3 billion this year.

By Dr. Joe Webb
Published: January 26, 2017

Everyone loves Uber. But can the company survive? It's burning cash and piling up losses at an incredible rate, expected to be -$3 billion this year. Yet, the company is valued at $600 billion! A Wharton professor penned an analysis of the business states that contrasted its low cost of operations with other costs it did not foresee. “What Uber underestimated,” he says, “were the costs that didn’t have to do with their technology and their business model, costs that have to do with the politics of being legitimate, [addressing] regulatory resistance and even cultural differences across markets.” Read the Wharton piece and also a Bloomberg article at their respective sites. 

Reuters has released its overview of world economic and political conditions. You can read about the report and download the free PDF. They refer to the world as “increasingly shaken and uncertain world.” That sounds like something Don LaFontaine would say.

Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.

 

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