Wednesday , August 21 2019
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Uber and Lyft

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(Dan here…Lifted from comments at Spencer’s SP 500 PE) PGL comments: 1. It is strike day for Lyft and Uber. Uber’s IPO is estimated to be at billion which strikes me as way overpriced. Why? Net revenue is only .9 billion whereas operating costs are billion for the latest reported year. Their net revenue is 7.5 times that of Lyft. Lyft’s operating costs turn out to be 170% of its net revenues. Interestingly both companies have net revenues that are 23% of gross billing. Let’s put it this way. If your driver charges you for a ride, he keeps only .70 even though its is his car, his gasoline, and he is an independent contractor getting no wages or fringe benefits. If this strike works – the financials for these two companies will go from

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(Dan here…Lifted from comments at Spencer’s SP 500 PE)

PGL comments:

1.

It is strike day for Lyft and Uber. Uber’s IPO is estimated to be at $90 billion which strikes me as way overpriced. Why? Net revenue is only $7.9 billion whereas operating costs are $12 billion for the latest reported year. Their net revenue is 7.5 times that of Lyft. Lyft’s operating costs turn out to be 170% of its net revenues.

Interestingly both companies have net revenues that are 23% of gross billing. Let’s put it this way. If your driver charges you $10 for a ride, he keeps only $7.70 even though its is his car, his gasoline, and he is an independent contractor getting no wages or fringe benefits.

If this strike works – the financials for these two companies will go from dreadful to just plain absurd.

2.

Lyft had its IPO on March 1 this year. Suppose you had purchased 100 shares:

https://finance.yahoo.com/quote/LYFT

You’d be out $2300 by now. Keep this up and you can be a great business guru like Donald Trump was!

Dan Crawford
aka Rdan owns, designs, moderates, and manages Angry Bear since 2007. Dan is the fourth ‘owner’.

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