Yves Smith for NYMag:
Uber has never presented a case as to why it will ever be profitable, let alone earn an adequate return on capital. Investors are pinning their hopes on a successful IPO, which means finding greater fools in sufficient numbers.
If Uber were to collapse as a result of kicking its financial realities down the road, it could be catastrophic: ride-sharing has changed the fabric of our urban environments.
Of course, hailing a ride via app is here to stay. But the cheap prices and instant availability? What we’re experiencing right now might well end up being known as the good old days.