-Uber is one of the tech companies running up deep looses
-Investors are not worried about the losses
-They are more focused on the end result
On Wednesday, the ride-hailing start-up lost $708 million in the first 3 months of the year.
For Uber’s investors, the loss is something to be applauded even though to many readers, the loss is nothing short of incredible.
An early investor, Jason Calacanis has congratulated the company on Twitter for continuing to grow its sales while cutting its loss from $991 million in the last three months.
Bradley Tusk, a political consultant and investor in Uber said ‘The trend is good. Revenue up. Losses down, even though they keep investing heavily around the world.’
If the company is thought to have potentials for sales growth and can show some modest modest progress in curbing its looses over time, then losing billions of dollars each year isn’t necessarily a bad thing.
Amazon was often unprofitable in its first two decades. Bezos alays focused on the long term, preferring to keep prices low for customers and reinvest earnings into fulfillment centers, logistics and new product initiatives.
An early Uber investor, Mike Walsh has said, ‘I have no idea if this is Uber’s strategy, but it could be’ as those investments helped Amazon grow its dominance over the retail world as well as build up businesses in cloud computing, on line entertainment and increasingly, hardware with the Amazon Echo.