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Yes this is the problem. Unless investors don’t care about returns how will Uber extract the profits required to justify their current valuation?


Firstly, I have no inside knowledge of their complete model, just assuming. Travis has said that the early markets are 'profitable', the early markets are also their most competitive. So the 20-30% model they have now should allow profitability in all the 300+ cities they're in. I'm assuming the margins are very tight, and that they have to do a lot of volume to be hugely profitable, which they're fast approaching.




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