Back
~
2
min read
· Posted on
February 21, 2024

Uber is finally making some serious dough and it may just have its strut back

Uber didn't have a great start to the year, but now it's looking like the tables have finally turned.

What's the key learning?

  • Uber started off this year with by making a $6 billion loss
  • Now Uber has raked in $8 billion, which is double its revenue last quarter
  • Pricing power refers to the impact on demand when you increase your price

👉 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.

What's the key learning?

💡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.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
No items found.