Monday, 13 February 2017 16:21

Association with Donald Trump Cost Uber $200 Million in 45 Days, Other Companies Feel It Too Featured

Uber's CEO perceived association with Donald Trump (sitting on his tech advisory panel) has caused a viral #DelteUber campaign, resulting in over 200,000 Uber accounts deleted in 45 days. Videos of the deletion went viral through social media. This is what it cost Uber to have the CEO sit on Trump's panel...

 

Uber fares   Average fare $ 12.00  
         
  Commisson rate   Fare mix Weighted avg
Uber X 25% $ 3.00 80% $ 2.40
Uber Pool 100% $ 12.00 20% $ 2.40
Booking fee   $ 1.75    
Uber Revenue per ride       $ 6.55
Average rides per year 156      
Deleted apps 200,000      
Uber Revenue lost due to Trump affiliation $ 204,360,000      

 

The spreadsheet used to calculate this is available as a Google Sheets file here, and I welcome any Uber drivers to modify and add to in in an open source effort to get an accurate representation of Uber's costs and payouts to drivers and passengers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A $200,000,000 (run rate) loss is quite material for a startup that's not even profitable. There is a real and tangible risk in businesses associating with the Trump administration, at least for Uber. Following the #deleteUber campaign, their closest competitor, Lyft, jumped to #7th position on App Store. This is 7 spots AHEAD of Uber. Material damage has been inflicted. While I'm sure this isn't a permanent situation, it is sure to be lasting and sends a clear message to other companies about the risks of a Trump Administration association. 

There are other boycott movements abound, the most prominent of which (GrabYourWallet.org) is rumored to have pressured retail stores to drop the Trump brands. We have not verified the validity of these claims. The movement does seem to truly have legs, and economic leverage behind it, as excerpted from the site:

** During the period of 2/6 through 2/10/17 a high volume of retailers began removing all or most Trump brand items from their websites including Saks OFF FIFTH, Burlington Coat Factory, Sears, Kmart, Jet, HSN, Gilt, ShopStyle, and Belk. HSN and ShopStyle confirmed in statements this was a deliberate choice,. HSN did point out that it is still selling at least one Trump brand product (commemorative currency), so it's remaining on the list for now, as is ShopStyle because it still offers 5 styles of Donald Trump Suits. Jet has been removed from the boycott list. So has Gilt. Belk has stated publicly it will continue to sell Ivanka in brick and mortar locations, so this company will removed from the #GrabYourWallet list until that is no longer the case. Burlington Coat Factory has removed all Trump brand goods from its site but has made no public statement about brick and mortar locations, so it too remains on the list. During this same week, Kmart & Sears removed all the Trump brand items from their sites that they directly stock and ship and publicly stated that they do not sell Trump items in brick and mortar locations. On 2/10, #GrabYourWallet participants voted to keep retailers on the list that provide official Trump brand products via 3rd party retailers.

An not so anecdotal look reveals that for companies with thin margins and/or material consumer exposure, there's a significant economic risk in association with Donald Trump as POTUS. 

Last modified on Monday, 13 February 2017 17:02

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