Uber's effort to draw a comparison to Amazon is unlikely to convince investors who can clearly see where the analogy falls apart.
, is based on the idea that Uber will eventually grow into an Amazon-like "platform" business, with ride sharing as the first step on its way to becoming a transportation behemoth. It's a compelling narrative for Uber, because the knock on Amazon for years was that it couldn't turn a profit. We now know it can — Amazon recorded net income of $3.6 billion in the latest quarter.
Uber burns cash today, as did Amazon when it went public in 1997. Both manage huge logistics operations behind the scenes that require hefty upfront spending. So shareholders just need to be patient for the long term and wait for those investment to pay off. That's what Uber would say..
In fact, Amazon's revenue growth has dipped below 20% only twice since its founding, even as it surpassed $230 billion in sales last year. And despite all the investments the company has made, Amazon generated positive cash flow in all but three years since going public. A truck pulling an Amazon Prime branded cargo container waits beside the entrance gate at Amazon.com Inc.'s new fulfillment center in Kolbaskowo, Poland, on Friday, Feb. 16, 2018.
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