NYU's Damodaran: Uber Made the Right Choice Leaving China

The transcript discusses Uber's valuation, highlighting its rapid revenue growth but significant financial losses. It explores Uber's strategic decisions, such as exiting the Chinese market due to high cash burn and competition. The discussion also covers Uber's global market challenges, potential future valuations, and the impact of networking effects on its business model.

What is one of the main reasons for the high valuation of Uber despite its losses?

• Its limited market presence

• Its profitability in all markets

• Its focus solely on ride-sharing

• Its rapid revenue growth and global expansion

Why did Uber decide to exit the Chinese market?

• It wanted to focus on the US market

• It was making significant profits

• It faced a fixed competitive environment

• It had no local competitors

What is a potential outcome for Uber's valuation according to the discussion?

• It will only decrease over time

• It will remain constant at $30 billion

• It could go to zero if it doesn't find profitability

• It will definitely reach $200 billion

What strategy is Uber experimenting with to retain drivers and customers?

• Eliminating partnerships

• Increasing ride prices

• Reducing service areas

• Introducing switching costs

What is the argument against a global networking effect in the ride-sharing industry?

• There is no competition in the industry

• Global success requires additional connections

• Local networking effects do not exist

• Success in one city guarantees success in others