Uber. WeWork. I'm at a loss - the real 'growth' story

Of all the [14,756] fares Jalopnik examined, Uber kept 35 percent of the revenue, while Lyft kept 38 percent. These numbers are roughly in line with a previous study by Lawrence Mishel at the Economic Policy Institute which concluded Uber's take rate to be roughly one-third, or 33 percent.

Uber refutes the findings…surprise, surprise.

With consumers tightening their belts and looking for better and cheaper deals, that trend in slower revenue growth looks set to continue.

If you're an Uber shareholder who needs a dose of reality, or you have a passing interest in reading a common sense perspective on this 'confidence trick', then you should read Hubert Horan's 'Uber's Path of Destruction'.

The report is prefaced with…

…based on Horan's 40 years of experience in the management and regulation of transportation companies. Horan has no financial links with any urban car service industry competitors, investors or regulators, or any firms that work on behalf of industry participants.

For those who don't have the time or inclination to read the 26-page report, here's a couple of extracts…

An examination of Uber's economics suggests that it has no hope of ever earning sustainable urban car service profits in competitive markets. Its costs are simply much higher than the market is willing to pay, as its nine years of massive losses indicate.

And

Uber pursued a "growth at all costs" strategy financed by a staggering $20 billion in investor funding. This funding subsidized fares and service levels that could not be matched by incumbents who had to cover costs out of actual passenger fares.

As a beneficiary of those subsidised rides, I'd like to personally thank the punters who've ponied up US$20 billion. But will they continue to be taken for mugs?

While the fanciful growth story is still their reality, you bet they will.

When Uber rattles the tin, those who are destined to learn that 'a fool and their money are soon parted' will pony up again.

And if the hype around the upcoming WeWork IPO is anything to go by, there seems to be no shortage of fools looking to be separated from their hard-earned money.