The above is a (British) Telegraph heading. Is it a justifiable news story? Yes; specifically who’s the mug who outlaid the $500 million for this doomed dog?
As I’ve repeatedly written, Uber can only survive as a socially useful co-operative. What it can’t do is make a corporate profit. It’s the easiest walk-in-the park short sell situation out there. Not withstanding the founder being the share seller, always a giveaway signal, you may think someone feels differently about Uber’s prospects. In fact the probable explanation is that the buyer was a short seller when the share price was much higher. He’d have sold at that high price level with borrowed stock and is now buying in at a lower level so as to replace the shares he borrowed.
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Uber is doomed to fail as its business model is based on a lie. Instead of a modern version of car-pooling where someone going from point A to point B picks up other people also going from point A to point B for a fee, in reality it is a booking app for unlicensed and unregulated taxi drivers. Uber rips off its drivers with low wages and the public via its extortionate “surge pricing” during periods of high demand. The recent fiasco after the Melbourne Cup at Flemington when the app server crashed leaving customers stranded and legal taxis overstretched is an example of its flaws. It should be shut down and fined by government regulators in every city that it operates.