Uber didn't have a great start to the year, but now it's looking like the tables have finally turned.
👉 Background: Since launching back in 2010, Uber has dominated the rideshare space and the food delivery space too. But it has never actually managed to make money.
👉 What happened: Uber started off this year by making a $6 billion loss. But now, it's looking like the tables may have finally turned.
👉 What else: Uber more than doubled its revenue last quarter, raking in $8 billion. And all of these impressive numbers despite the fears that Uber didn’t have much pricing power.
💡Pricing power is an economic term that describes the impact on demand when you increase your price. As Warren Buffett says: pricing power is the single most important decision in evaluating a business.
💡If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. In the past, Uber has always been fearful of raising prices and losing customers.
💡But it needn't have been. Uber has added service fees and a fuel surcharge. And neither of those costs has been enough to stop customers.
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