Bringing Uber back to Earth
Investors are losing faith in Uber's promise of rapid growth and market disruption, and are demanding to see actual profits.
Investors are losing faith in Uber's promise of rapid growth and market disruption, and are demanding to see actual profits. Oracle's founder Larry Ellison has gone as far as to describe the transport app company as "almost worthless".
Manuela Saragosa speaks to Scott Galloway, professor of marketing at NYU Stern School of Business, who says the company's problem is that it is a great brand and great app that have been built upon a fundamentally unprofitable market - ride hailing. Meanwhile Patricia Nakache of Trinity Ventures says that Silicon Valley venture capitalists such as hers are becoming increasingly wary of businesses that generate rapid growth by simply burning through billions of dollars of cash.
Producer: Edwin Lane
(Picture: An UberChopper helicopter in Gdynia, Poland; Credit: Michal Fludra/NurPhoto via Getty Images)