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The Economics of Uber

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First 500 people get 2 months free of Skillshare: http://skl.sh/polymatter7 Patreon: https://patreon.com/polymatter Twitter: https://twitter.com/polymatters Reddit: https://reddit.com/r/PolyMatter Discord: https://discord.gg/polymatter Uber may be the highest-valued private company in the world, but its economic troubles are profound and concerning. This includes a paid sponsored promotion which had no part in the writing, editing, or production of the rest of the video. Music by Varsity Star: https://varsitystar.bandcamp.com/releases their Facebook: https://www.facebook.com/varsitystarmusic/ Special thanks to http://ridester.com for looking over the script in advance. Ridester offers resources for ride share drivers. Brief music clip: Teddy Bear Waltz Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License http://creativecommons.org/licenses/by/3.0/ VHS fast forward effect modified from https://www.youtube.com/watch?v=s_auAhu-91U https://www.forbes.com/sites/lensherman/2017/12/14/why-cant-uber-make-money/#7d83f5f410ec Dr Seuss Style Font: “Yikes” by Rick Montgomery https://www.dafont.com/yikes.font?l[]=10&l[]=1 http://flopstarter.com https://medium.com/enrique-dans/why-is-uber-sweeping-all-before-it-because-it-understands-economies-of-scale-70d104688783 https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee http://ritholtz.com/2018/05/tlc-medallion-owners-created-uber/ https://www.caseyresearch.com/forget-stocks-buy-taxi-medallions/ https://www.nytimes.com/2017/09/10/nyregion/new-york-taxi-medallions-uber.html http://www.nyc.gov/html/media/totweb/taxioftomorrow_history_regulationandprosperity.html https://www.nytimes.com/1996/05/11/nyregion/medallion-limits-stem-from-the-30-s.html https://www.theverge.com/2018/6/26/17500510/uber-london-license-appeal-court-decision?utm_campaign=theverge&utm_content=chorus&utm_medium=social&utm_source=twitter https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/ https://www.washingtonpost.com/news/the-switch/wp/2016/06/27/how-much-uber-drivers-actually-make-per-hour/?utm_term=.cc5e13967aec https://www.cbinsights.com/research-unicorn-companies https://expandedramblings.com/index.php/uber-statistics/ https://medium.com/uber-under-the-hood/uber-in-small-towns-and-cities-a-data-deep-dive-6e3cc2a250f4 https://www.wsj.com/articles/how-self-driving-cars-could-end-uber-1494154805 https://www.wsj.com/articles/with-kalanick-out-ubers-troubles-are-just-beginning-1498049054 https://www.wsj.com/articles/with-kalanick-out-ubers-troubles-are-just-beginning-1498049054 https://www.statista.com/chart/12059/uber-revenue-bookings-and-net-loss/ https://www.theguardian.com/technology/2018/mar/01/uber-lyft-driver-wages-median-report https://www.ridesharingdriver.com/uber-fees-cancellation-booking-cleaning-fees/
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Text Comments (1182)
PolyMatter (4 months ago)
New logo + we’re getting the reddit.com/r/PolyMatter subreddit going!
Pratik Raj Pant (5 days ago)
P
Nova LiThePear (1 month ago)
China has a uber like thing. Ive been in china to visit my relatives about 5 months ago.
Darth Awar (3 months ago)
Uber stole all their self-driving car technology from the Waymo Company the Alphabet/Google Self-Driving Car Company (Over 2,000 pages of Documents not just diagrams and lists of parts but programing code as well!), They also have the whole legal backlash over their test self-driving car killing the girl earlier this year! Google/Waymo and Tesla will be the real giants to push self driving cars forward, Lyft & GM are said to be working with Waymo to get the cars out first while being faster (via cloud sharing traffic data and routes!) while being much safer than Uber's, Uber is rumored to be working with Ford to make these cars when they get the technology right but seeing they are in legal battles with Google forcing Uber to waste time and money in court while also stopping them from using the stolen tech until the matter can be resolved forcing Uber to waste more money in creating their own version of the stolen Google/Waymo hardware & software which cost them money yes but arguable more important time giving companies (like Waymo, GM, Tesla!) a huge market share before Uber can even get theirs out the door! Tesla & Waymo have stated they have no plans to work with Uber or even allow them to purchase their cars or tech despite the amount as Uber is already so large and greedy that if they helped Uber it would be like letting your kids feed a wild bear Not a Good Idea!
Jonathan Bryant (3 months ago)
3:43 for you and me**
Richard Neal (5 hours ago)
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Tom Federico (15 hours ago)
Do not work for these app based jobs, we are telling these rich corporations that we like working for minimum wage or less, for no benefits, while devaluing your only asset....Does that sound good to you? Uber, uber eats, grubhub, doordash, they are getting rich, they recently lowered pay, and increased fees...That's when they became even more valuable...But i guess we love it, nobody is complaining....The rich like us stupid.....We are all just suckers working for the rich.....
Kaka karrot Cake (1 day ago)
It’s shitty working for this company I would never wish it on anyone there is no hourly
Kaka karrot Cake (1 day ago)
Uber working for them is shitty
csxcobra csxcobra (1 day ago)
ALL DRIVERS DO THIS..........TURN DOWN 5 RIDES PER WEEK. TELL THE CUSTOMER BECAUSE OF THE RATE DECREASE IN OUR PAY THIS RIDE NO LONGER PAYS ME ENGULF AND FOR THAT REASON I WILL NOT TAKE YOU. PLEASE GET OUT OF MY CAR AND CALL UBER LYFT AND TELL THEM TO PAY THE DRIVERS BETTER SO I CAN GET A RIDE. PASS THIS ON AND THE RATES WILL GO UP. YOU ARE NOT REQUIRED TO TAKE ANY RIDE.
Leo A (2 days ago)
Uber will die soon.
cycling life (2 days ago)
Dont drive for these companys. I know alot of you probably hate a warehouse job buy but, reality is, you end up breaking your car and be unamployed in a short mater of time. They dont pay enough to cover a new transmission engine overhaul and other work related wear and tear.
Prince Majithiya (2 days ago)
Your videos are really good!
GMK OSU (3 days ago)
I love with this channel
Vaughn International (3 days ago)
First time here. The Sam I Am Bit made me subscribe...😂🤙🏽
Noah Franklin (3 days ago)
Your writing is impeccable, but your speaking is flat, somewhat apathetic sounding. In my opinion, if you worked on sounding more enthusiastic, it would do wonders on the overall quality of the video.
yakyakyak69 (4 days ago)
Fascist-Socialism: When business (taxies) use government (socialism) to use the force of regulation to kill the competition with "regulation".
Depot msa (4 days ago)
the video was great except that ad at the end, fuck ads !
william wallace (4 days ago)
Do a video on why Facebook's not doing so hot please.
Brennen Cox (4 days ago)
Uber didn't fail in China, per se, it was banned/kicked out.
Eiffel R (5 days ago)
Surge prices can be a b*tch, 2 years ago new years eve, I paid $30 for a 20 min ride to downtown Chicago. Around 2am tried to get the same ride back home the price jumped up to $170
Hey love your content 929 392 6266. I have a offer I think your going to love.
Ashutosh Kumar (6 days ago)
Which video editor do you use?
ankit chheda (7 days ago)
A windows phone.. nostalgia
Yin Scape (9 days ago)
5:22 "What are you doing scanning a QR Code in 2018?"
Niki (10 days ago)
It's expensive in India. Indian govt has a taxi meter system.
t4705mb6 (10 days ago)
Self driving cars? End of the road. https://www.youtube.com/watch?v=Ujk_5KD5G9o https://www.youtube.com/watch?v=g0TaYhjpOfo
Alex 2017 (11 days ago)
What is uber?
Ferricity AMV (12 days ago)
It does make sense. The more driver, the more competition while Uber are just gaining golds in this competition.. It has to be a well balanced equation
rejvaik (17 days ago)
Yeah people are wising up to the shit that is Uber and refusing to use it
RhysWilliams348 (18 days ago)
Uber is most definitely not the highest valued private company in the world.
lordfuture1 (21 days ago)
Prediction: Uber and Tesla or going to merge or form a partnership in the not-too-distant future mark my words. And if it's not those two companies, it'll be two companies from their respective Fields who recognize the weakness in their own business strategy and try to fill it with a merger. Uber wants in on driverless cars, Tesla is in a great position to help with that. Tesla would like to cover its butt by getting a piece of the transportation/ride-sharing economy. They can each take a large Leap Forward by plugging in the strength of each company into one really strong company.
Matthew James (24 days ago)
Love your videos! Can I please ask you how you get this reliable data? I would love to inform myself about topics like this from reliable sources!
Khodor Sheikh Moussa (25 days ago)
4:40 France flag
Lillian (27 days ago)
Lmao a lyft as came before this vidoe.
Luis Angel (28 days ago)
You should review the doordash model too
10000 subs no likes (29 days ago)
I live 1 town north of gridly
LIAM LIAMESQUE (29 days ago)
Id rather walk kids..Uber sucks and it will go belly up
These videos are the only one, I can watch for Hours.
Questioning Everything (30 days ago)
This video was a ad nice try I bet you got paid nicely
Alex Class (30 days ago)
Don’t like Uber, never use it
M Asynaps (30 days ago)
an uber driver really needs to become skilled in managing a business.. This is important when trying to make most profit. It requires being versed or having people that work for you to maximise tax saving and costs.. managing money, creating 401k.. and best utilizing funds in that 401k for your benefit (tax free)
N k (30 days ago)
Awesome
Luke (1 month ago)
If there were a medallion system for Uber drivers, it would give raises to some at the expense of blocking out the other drivers, as well as raising rates and lowering competition. As it is now, yes the drivers don’t get paid very much, but it must be paying enough that they are choosing it over working at McDonald’s or collecting government aid.
Luke (1 month ago)
Wouldn’t people stop trying to become taxi drivers when it became unprofitable anyway? And balance the price at a barely profitable level?
James K. (1 month ago)
Self driving cars will be deadly to the public and ubers downfall.........
chetan meshram (1 month ago)
beautiful
JJRicks Studios (1 month ago)
What am I doing scanning a QR code in 2018? Curiosity. Plain and simple. ;D
Baby Bop (1 month ago)
Right off the bat. First fact is 100% false. It may be the highest valued private American company (not sure) but there are many private companies worth more. Saudi Aramco, for example, is worth $780B. SASAC in China is worth $1.5 trillion. Skillshare should get their money back.
Yukimutou Kitzuni (1 month ago)
In my area, majority of the time Lyft is cheaper than Uber during the day. Like today, Uber wanted me to pay $30 for the same route and distance as Lyft wanted me to pay $25. At night, it depends on which drivers are riding because sometimes at night Uber is cheaper than Lyft but other nights it's vise versa. I usually try to go with the cheaper one. I found out you can donate to charities with the cents that add up to the next dollar on the Lyft app.
New subscriber here. Great videos! :)
Phong Thanh (1 month ago)
your voice is slow and clearly, It helped me a lot to have a great way to study english with many useful information . Thank you very much!
zepe (1 month ago)
I really like uber. Best thing for people going home after a party. Also, in São Paulo, the amount of uber races per day is way bigget than in New York, which kinda shows how much brasilians love Uber
Frank velarde (1 month ago)
They didn’t lose money they lying the top people kept the money for themselves.
Daniel Mondragón (1 month ago)
2:24 LOL, that was exactly what I have been discussing with my friends. Where are all those youtubers and influencers going to do once they stop being "famous"? They are spending too much time and for sure they are not saving that much for retirement.
Sudeep Ambati (1 month ago)
that smooth ad transition is excellent.
Hendrik Gormanns (1 month ago)
Brilliant Video! But market dynamics are strong in this industry and Uber just seem to have changed it's strategy under the new CEO. “Uber’s Massive Data Play” @parismarx https://medium.com/s/story/ubers-new-vision-is-a-massive-data-play-b7e59ec59d42 give 👍 for spreading the news
Aviendha (1 month ago)
You left NZ off the map.... we have uber. Sigh. One day we'll be put on maps.
OnBase Test (1 month ago)
An Uber driver once told me she was given a rider in the middle of a sketch neighborhood. She waited there for 3 minutes, texting the person asking where they were at. At the end of the amount of time before she could cancel the ride, she was sent a text message from Uber stating it was a test to see if she'd stay parked in a sketch area. She passed.
George (1 month ago)
So why are they losing money?
Pensive (1 month ago)
Please make the same video about lime and bird
Cousin Justin (1 month ago)
*Uber Raped Me*
Ryan Saplan (1 month ago)
Love the dry humor
Jeff (1 month ago)
The economics of skillshare
snotclot (1 month ago)
Another seamless transition
MR George (1 month ago)
👍🏻
Max Borden (1 month ago)
I feel like you glanced over the problem in China
australian fines (1 month ago)
fuck entrepreneur in silicon valley , bunch of crooks greedy animals , who will do anything for profit
Kiwi M (1 month ago)
0:16 THIS ISN'T A REAL MAP at all! WHERE THE FRONT DOOR IT NZ !
Hosanna (1 month ago)
"if Edison was worried about his candle customers, he never would have invented the light bulb” - Nathan Fielder
Jaden Grant (1 month ago)
Lyft is cheaper than Uber.
Jeff Byrnes (1 month ago)
Shit job run by a shit company of pathological liars.
Mercede (1 month ago)
it's surprising when you do calculation for taxi, you don't calculate the car depreciation, car maintenance and other stuff. they all come into play when calculating the profit by uber. that's not a fair comparison
alright valcano (1 month ago)
Do you voice your own videos
Tony bolony (1 month ago)
Name 1 taxi cab company that has gone public.
Kumpher 187 (1 month ago)
Uber closed their company in my country (Trinidad & Tobago 🇹🇹) after not getting approval from the law. They refused to understand the problems the government were already facing with PH drivers (private taxi drivers or taxi drivers without permits). Uber refused understand that people get kidnapped, raped, murdered by PH drivers so they decided to write a distasteful letter stating that they were closing down business in the country. Without even trying to understand the matter they were dealt with they shouldn’t have even began the business
sammy R (1 month ago)
Uber is still a rip off to use but mathematically it's still cheaper than taking a taxi
Mr. Rumsey (1 month ago)
Try Driving for Uber or Lyft. Make your own schedule and make some quick cash! https://lft.to/2xPMzcK (lyft) https://ubr.to/2I9SKgB (uber)
Rachel&John Hyatt (1 month ago)
Koch industries is a bigger private company
Paul Seager (1 month ago)
lost $700million in the past 6 months. They're shedding money faster than any other start up in history. That's how your fares are so low, they're subsidised by investment bankers to the tune of 46%
Chuck's poke (1 month ago)
As a black man having horrible experience trying to hail a cab, Uber and that other service is a God sent.
Tiglith (1 month ago)
Oh the puns
Jack Sparrow (1 month ago)
this channel is enjoyable to watch
Saul Pinedo (1 month ago)
I love 10 mins from gridley !!
Sincerely Eccentric (1 month ago)
How do you even start a company based on needing people to use it ... like selling apps, or Uber or fiverr? All I see is the constant chicken and egg problem.
Oluf Marshall (1 month ago)
https://journal.media/life-as-an-uber-driver - Uber is​ scum. Delete the app and use a proper Taxi service.
Richard Goscicki (1 month ago)
If you work for Uber you have no rights. They can fired you on whim. Plus they are liars, cheaters, and hypocrites. Stay away. No matter how desperate you are to pay bills, you can't win with this company without being a contemptible slave.
atur chomicz (1 month ago)
There's a reasons why you don't see uber in Vienna
Igal Avraham Javdanfar (1 month ago)
Uber / Lyft in La sucks and Shame on taxi drivers in La and nyc for being so rude and so dirty and so expensive.
Tzu-Chi Hsu (1 month ago)
Interesting video, but I do have one problem with it. At the end, the video claims that the answer for Uber is self driving cars so they can avoid paying the drivers all together. However, if they do go to self driving cars, they would have to own the cars and buy the gas, which is exactly opposite of their model today.
Az Zaid (1 month ago)
uber isnt most valuable privately held company,its 4th most valuable ant financial,byte dance,didi chuxing are more valuable than uber ant financial value is close to 180 billion
Minh Hoang (1 month ago)
Great content but the voice over is so unenthusiastic and made me feel sleepy :(
Jonathan Reeves (1 month ago)
Uber is successful because they by-pass the laws and Standard Regulations that Are put on Taxi Companies to keep you Safe. Like where i live, its Required for all Taxi's to have commercial insurance, But Uber doesn't provide commercial insurance to their drivers, and for drivers to get it, it would cost them more then what they would make driving for Uber. Not to mention their insurance doesn't cover Passengers, So when you are in an accident (at least around here) in an Uber and you get hurt, You have to rely on your own insurance or The personal insurance of the driver, and not Uber.
Yahya Bazmani (2 months ago)
1:50 wtf I live in Dubai UAE 🇦🇪 ands Burj Khalifa is in Dubai not South America ugh 😑😡🤬😡🤬
Jordan Gouri (2 months ago)
Signing up to drive? Use my link https://partners.uber.com/join/?city=Toronto&invite_code=znud4vnsu
GPS ON TIME (2 months ago)
Uber cannot go public as it is involved in lawsuits and alleged violations of federal law and is unconstitutional. Uber is in violation of Federal Motor Carrier Rules, two Antitrust laws (Predatory Pricing and Vertically-Integrated Monopoly), and fraud (false promises of income). State-by-state legislation is unconstitutional as it allows Uber to operate virtually unregulated, while taxis must operate under complex regulatory structures (equal protection clause). There is also the Supremacy Clause, which preempts state legislation because those laws cannot exempt Uber from Federal laws. As far as the low fares go, you can't fool the laws of economics. Uber drivers are making closer to $6/hour (not $8) because the rates Uber forces drivers to operate on is 1/3rd that of taxis (85 cents vs $2.60 per mile). So, for Uber drivers to make the company's claim of $18/hr, they would have to triple the 85 cent/mile rate, which is . . . wait for it . . . about $2.60/mile. Ta daaaaa . . . oh, and driverless cars? Won't happen. The liability issues will kill the technology, flawed and expensive as it is.
Derrick Waters (2 months ago)
I worked for uber and lyft for two years and I pretty much agree with everything said here. I made more like 12 an hour because my car was cheap and it had very few problems while I was driving. All those expenses can be written off on your taxes so yes you don't get the benefits of being an employee but you get all your cash paid in gross income which can be very helpful. At the end of the year I was able to write off a lot of things in taxes. The problems start when your car starts to get wear and tear.
D.B. (2 months ago)
The IPO will be oversubscribed and it’ll look amazing for a few months (or weeks)... then it’ll tank. Bye bye investment.
D.B. (2 months ago)
Local drivers where I am are known to collaborate and turn off all at once to create surge pricing.
Jeeto (2 months ago)
It's higher value than IKEA and other huge private companies?
Patrick Medvitz (2 months ago)
Are you in college?
Movies List (2 months ago)
how to make these type of video?
Lucas Martins (2 months ago)
They could open the market by letting drivers place their price and users choose.
Manhwa Fan (2 months ago)
I appreciate you pointing out the fact that Uber's drivers are all independent contractors. That means Uber is not required to offer them any benefits like healthcare, 401k, life insurance, or higher education. The drivers knowing this still do it, because in normal jobs, it's very difficult to get 80 hours of work because to do so you have to hop between multiple employees and conflicting schedules. Please tip your drivers.

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