UBER STOCK – Case Study – SHOULD YOU INVEST IN IT NOW?

Absolutelly Not – Here is Why.

I said it before IPO and I still think my way oh trying to see the future is quite accurate.

Uber (and Lyft) dream (and tells this to investors) that they will be profitable once they get rid of drivers and run driverless cars… and I agree with that because Uber will quadrupal in value if they stop paying drivers.

Sounds promissing…

but is it?

If Uber and Lyft run driverless fleet of millions of cars, they can lower the price for passengers even lower than what it is now. That will make millions of people to stop buying cars because rideshare will become more affordable than owning a new car.

Sounds pretty awesome. But, there is a problem.

You see, the automakers are not stupid and they realized that the future is not in car sales, but in rideshare. And that is why currently every single car manufacturer is working on creating a rideshare service. See Tesla, GM, Toyota, Ford, Mercedes and even Hyundai. Even BMW and Mercedes partnered up to test rideshare…

Now. If automakers start rideshare service, they are competing with Uber and Lyft.

So, what do you need to run a driverless rideshare service? Two things: Cars and an App.

Uber has the App
Carmakers have cars

Building an app is muuuuch cheaper than building cars.

To stay competitive Uber and Lyft must:

a) build their own cars
b) partner up with another car maker
or c) get crushed by automakers and go out of business.

Why? Automakers are building cars, so all they need to do is invest and write a code and build an app.
Uber and Lyft must build a car manufacturing….. thats waaaaayyy too expencive than building an app.
Or they need to partner up with existing car builder, thus sharing their already f..up revenue model with that carmaker.
As you can see, its cheaper for carmakers to compete with Uber than Uber competes with carmakers.

So thats how I see it and said this before IPO – Uber and Lyft owners and early investors realized this and were cashing out… dumping the bad debt on NEW investors….

Thanks, but no thanks, I'm not buying Uber or Lyft.

Very useful video. I followed Uber when it floated. I felt it was a bad investment but I watched it to learn signs of a bad investment. From that stand point it was a good lesson.

why is BYND still going down? it reported good income? seems like too much overhead supply on UBER even if they report good income. it will take a lot of sideways movement to shake out all the sellers.

how can Uber pay taxes if they make no money? seems like too many write offs

not even Amazon pays taxes

how do you use the Options chain to predict the price action of a stock in a few days?

what does BYND tell you in the options chain, how will it do next friday?

Great thoughts..

step away from the camera

Thanks for all you do and the time you put into these great videos!

I am currently a full-time Uber driver. Hopefully one day I can wean myself off this lifestyle and become a full-time traitor!

Uber has a big unlock of shares coming