Like many others, I’ve enjoyed watching Elon Musk show his ass daily on Twitter. Trying to make a profit from a historically unprofitable company, now saddled with more debt, is definitely tough even with competent leadership. And Elon is anything but competent.
But Twitter isn’t the only supposed trillion dollar company that’s in big trouble. This weekend, for grins, I opened my Lyft app to see how many drivers they had in the Rochester area. Pre-COVID, a Lyft map on a weekend afternoon looked like the inside of a bee hive, with dozens of little car icons buzzing around on their investor-subsidized drives. Last weekend, there were two cars servicing the entire area. A couple of minutes ago, there were seven cars on the map, about half of what there would have been pre-COVID.
Lyft’s latest earnings report isn’t looking great, either:
Q2 revenue of $990.7 million grew 13% quarter-over-quarter and 30% year-over-year
Q2 net loss of $377.2 million
Q2 Adjusted EBITDA of $79.1 million grew 232% year-over-year [Ed note: EBITDA is bullshit]
Since I’m indulging my hobby horses, let’s turn to Amazon delivery.
Pure anecdata, but I see a lot more dents in Amazon vans than USPS, UPS or FedEx vans. Maybe that’s because the Post Office, UPS or FedEx take their dented vans off the road and fix them. Or maybe it’s because Amazon’s gig economy non-union drivers just aren’t as good as their counterparts in other delivery companies. We probably will never know, or we will learn it after a few kids get run over by Amazon vans.
Anyway, I doubt that Amazon will become the husk of a trillion dollar company, but I don’t doubt that Twitter, Lyft and Uber will be, and we’re going to be left to clean up the mess.