Going public is still a fundraising event that puts cash on the balance sheet of the company.
So whether they are funded by VC's or large institutional buyers who are the majority traders on the public market, there is no difference and the companies continue to lost money.
The issue for Uber is that they need to change the narrative. They don't have the story that Amazon did, that they are losing money because they are reinvesting it back into tremendous infrastructure which will give them scale.
Uber is losing money because they grew very quickly so there were a lot of innate inefficiencies because of that. So these firings are a chance to right size the company and see if the new trimmed down Uber will now be profitable when eventually ridership returns to normal.
So whether they are funded by VC's or large institutional buyers who are the majority traders on the public market, there is no difference and the companies continue to lost money.
The issue for Uber is that they need to change the narrative. They don't have the story that Amazon did, that they are losing money because they are reinvesting it back into tremendous infrastructure which will give them scale.
Uber is losing money because they grew very quickly so there were a lot of innate inefficiencies because of that. So these firings are a chance to right size the company and see if the new trimmed down Uber will now be profitable when eventually ridership returns to normal.