This question has been asked for several years in the past. I’m sure it will be asked for several years in the future.
Uber has managed to raise several rounds of funding at mostly rising valuations over nearly 10 years. This proves that its business model is viable, notwithstanding its mounting losses. The way I see it, in today’s world, funding provides at least as much viability to a business as revenues and profits.
Uber can survive as long as the man on the street thinks that, since it’s a famous company, it must be a financially sound company, and buys its stock at whatever skyhigh valuation it’s selling at.
Call this conviction or euphoria or froth or whatever, but, as long as this sentiment lasts, Uber will survive forever.
And it’s not just Uber. 83% of companies that IPO’d in 2018 had negative EPS when they got listed.
Dropbox, Spotify, Snap, SurveyMonkey, Tesla … these are not the only startup-turned-public companies that enjoy skyhigh valuations despite making whopping losses. 83% of IPOs in 2018 were for loss-making companies. https://t.co/FWAE9InArz
— Ketharaman Swaminathan (@s_ketharaman) March 5, 2019