Buried in Uber's IPO, an aggressive plan to destroy all public transit

Originally published at: https://boingboing.net/2019/05/08/forever-unprofitable.html

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AGAIN?

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So you’re saying we should short the stock.

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They’ll destroy public transit, increase pollution and make congestion skyrocket all while losing other people’s money.
This is what end-stage capitalism looks like.

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I look forward to the upcoming movie Who Framed Gerry Giardia?

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giardia

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So kawaii!

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Unfortunately there is an almost unlimited pool of fools willing to pour money into companies like this so the stock may keep its value for a long time. Understanding that something is a bubble is a lot easier than predicting when it will burst.

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Lyft’s share price is 25% down from its IPO level last week.

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Except that most public tarnsportation it’s subsidized, and most urban and suburban bus routes are run at a loss, if you don’t put in externalities caused by increasing private traffic.

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Yeah, I think this is just fluff to convince investors that there is still lots of growth Uber can do, not telling them that these are even less profitable areas than the unprofitable ones they are in now.

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The problem is the damage they can do while still running at a loss. It’s a lot easier to sabotage public transit than to build it up. A few years later you end up with no Uber and no public transit.

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Exactly. What will happen is that people that was using public transport, when it start to collapse because is sabotaged, they start to seek alternatives, and if the alternative is to buy a car, moped or bike it means that there’s a sunk cost.
Worse if people has to change habits to get back to public transport they have to change back habits, and if people finally decides to relocate due bad transportation the decision it’s almost final.

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There’s only so much space on the roads. Traffic will get worse and worse. This isn’t a good plan for anyone.

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This is what I came here to say.

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After watching Lyft stock plummet after its IPO, I have no idea why anyone would put their money into an unprofitable, dishonest, debt-ridden company claiming they’re worth $80 BILLION. But hey, I’m no financial genius.

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“In the prospectus that Uber filed with the SEC, it claims that more than 60,000 U.S. drivers have filed arbitration demands against the company. According to Bloomberg, that eye-popping number of legal disputes could cost the company at least $600 million.”

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The problem is that market can stay irrational longer than you can stay solvent

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Or lose their job because they can’t afford a car, or have to travel in streets or highways where a bike or moped is either not allowed or unsafe.

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Yes, deregulating who gets to drive a bus can have no unforeseen negative consequences. I’m sure Uber will in no way attempt to minimize costs by utilizing the most minimally qualified independent operator to drive a bus. It’s not an employee, so it’s really not there problem what happens to other cars or pedestrians that get in the way of their business model.

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