Since launching close to a decade ago, Uber has revolutionized transportation, creating a new paradigm that has irrevocably altered the way people travel in markets across the country. Or has it?
While the ride-sharing platform has gained significant adoption, it’s been marred by a flurry of negative press, headlined by the termination of the company’s longtime CEO. Also troubling is the fact that Uber is burning money: Despite revenues near $7 billion, the company was $2.8 billion in the red last year, and they continued to lose money in the first two quarters of 2017. With Uber bleeding money so quickly, some analysts have long been wondering if the company is operating on borrowed time.
Of course, there are a host of companies that had slow paths to financial success but were ultimately profitable after years of building market share. Amazon is one of the best examples, and Uber could still follow Amazon’s lead and turn things around in the coming years.
In the meantime, it’s interesting to note that Uber is poised to make a significant profit from the sale of an Oakland headquarters facility that it purchased in 2015. While Uber’s investments in ride-sharing operations have yet to show a financial return, the company’s real estate investments are beyond reproach.