Upwork UPWK Company I like, Call Options

Upwork's Website

First time in a while I found company with great growth potential and fair valuation. Probably I wouldn't notice UPWK as a stock worth interest, if not for high volume day and substantial jump in price, because, usually I don't look for companies with valuations over 1 P/S. So I checked fundamentals, and I realized UPWK has market cap of less than 1.5 billion which is very unusual in technology sector, it doesn't make any profit, has revenue growth +20%, that's still nothing special to get excited about, until you read some more to find that Upwork is a leader in the field of remote hiring, it has been around since 1999, much longer than any competitor and has new CEO (Hayden Brown) in place with vision to execute growth at higher rate, possibly at +50% pace.
So, the very next day I bought 2 call contracts with expiration June 19th and strike $12.5 at average price $1.55 per contract. Now, let's hope that Upwork continues on it's uptrend to make me some money :)

Upwork's weekly charts since it's IPO in 2018

 

Upwork Inc UPWK CEO Hayden Brown on Q4 2019 Results.... video.

 

 

Can You Make Money with Uber ?

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Uber is not all it is Cracked up to be

If you are a professional driver who is considering a job driving with Uber, there are some things you need to know. Do not be fooled by their deceptive and sometimes downright dishonest, claims about the benefits of joining Uber.  Ads in most major cities are claiming incomes of $1000 per week, while in reality Uber drivers are earning less than half that amount even working 50-60 hrs. per week. The Uber concept is good for the consumer, great for Uber, and horrible for the driver.
In an article that appeared recently in Business Insider , the author interviewed several Uber drivers and they uniformly stated that they have never come close to earning what Uber ads claim, and that earnings have been steadily decreasing for some time now because  Uber has flooded the market in most major cities resulting in less than 50% occupancy for most  Uber drivers.  Not a single driver reported making anywhere near $1000 a week after subtracting gas cost and fees paid by the driver, and of course after Uber takes their 20% right off the top. Add to this the wear and tear on your vehicle and it turns out the driving for Uber pays significantly less than driving for a conventional cab company.

Uber also employs a bait and switch tactic when trying to attract new drivers;  In LA, for instance Ubert started out with a $2.50/mile rate that attracted many new drivers, since at $2.50/ mile the drivers could earn a living without working  a ridiculous number of hours. Once the needed drivers were hired, Uber dropped the rate to a measly $1.10 per mile, not enough to make a living no matter how many hours the driver works. The chart below shows how Uber empoloyed the same tactic in NJ:

NEW JERSEY:
Original Price          Summer 2014 Price              Fall 2014 Price
$2.25/mile                 $1.90/mile                    $1.64/mile
$0.30/minute               $0.20/minute                  $0.20/minute
$3.00 base                 $3.00 base                    $2.00
$7.00 minimum              $7.00 minimum                 $6.00 minimum

As this chart shows, Uber started out advertising reasonable rates that would provide a full time driver with a reasonable living, and within the space of a few months dropped the rates so that the same driver working the same hours would make 28% less; Thus a driver making $50,000/yr gross to begin with would make only $36,000/yr after the rates were lowered.

Another move by Uber to attract more business was to cut rates in major markets to well below -market levels, attracting new traffic (which Uber profits from) while forcing  drivers  to drive longer hours at the reduced fares to make the same amount of money.  Once again, Uber wins, the consumer wins, and the drivers lose.

It is also worth noting that Uber discourages tipping, and didn’t even include the tipping option in the app until very recently. That is because tipping doesn’t benefit Uber, and by not encouraging tipping the service appears more economical to the consumer.

Probably the best indicator of how Uber views their drivers is the fact that they try to convince their drivers that all of their sleight of hand concerning rates, fares, and commissions is actually in the driver’s best interests. Not only do they brazenly exploit the very drivers who have made them rich, but they treat them as if they are ignorant fools who will believe the wild claims that Uber has been making a standard component of their business model. Compare this shady way of doing things with the legal, moral, and business philosophy of the traditional cab company or limo service, and I think you will agree that there really is no comparison at all.

This is also true when it comes to vehicle maintenance and replacement costs since with the legal cab company the driver does not incur any repair or replacement bills like the Uber driver will encounter as his car ages rapidly from the grueling regimen a commercial car endures. The expense of having to purchase a replacement vehicle is enough to put most single car Uber drivers out of business, or at best deeply in the red for a considerable time.

After taking all of these  factors into consideration, it becomes clear that driving for Uber has absolutely no advantages over driving for a traditional, legal, cab company. The cab company’s rate ( currently around $2.40/mile in most urban markets) is not going to fluctuate wildly. This provides the driver with a stable income allowing them to make future financial plans with a reasonable amount of confidence that their incomes will remain stable moving forward. The cab company is unlikely to flood the market with excessive cars/drivers as has been the case with UBer in several locations. The bottom line is that Uber does not live up to it’s claims and there is more money and more security driving for a legitimate, legal cab company.

Request your local Uber drivers in Tampa, Miami, Orlando, St. Petersburg, Clearwater, Sarasota, Jacksonville, Ocala, Naples, Gainesville, Tallahassee, Fort Lauderdale, Cape Coral  and ask how much money they really make......

Taxi app wars in China fought over information...NO KIDDING

Picture by wantchinatimes.com

At least Chinese are honest and transparent about why they are spending $100's millions of dollars on developing and popularizing taxi apps, which has yet to build up a clear profitability model.

.......We don't get that from Uber, Hailo, Lyft or any other local taxi app hailing / booking company in US, but constant stream of legal controversies and misinformation, wonder why?

"Alibaba, Tencent spending big on taxi apps despite lack of profit model

Alibaba Group and Tencent Holdings, China's internet giants, are in a neck-and-neck fight in the taxi app market. On Jan. 20, Tencent's Didi, its taxi hailing service, announced a plan to invest a further 200 million yuan (US$33 million) to benefit passengers. The very next day, Alibaba's Kuaide swiftly announced it was investing 500 million yuan (US$82.5 million) for the good of passengers, Shanghai's China Business News reports.

Some commentators are asking why the two giants are willing to throw so much money into the taxi app market which has yet to build up a clear profitability model.

>>>Read More

Advertising on Taxi Cabs in Florida

Own a Taxi Firm in Florida? Think About Third Party Advertising

picture by flaoutdoor.com

By JC

Florida is a pretty big State so you would think there is plenty of business to go around if you own a taxi company. However, for those of you that don’t know, this is a highly competitive market! Cities like Orlando, Tampa, Miami and a host of others are all massive tourist attractions and many thousands of people pass through each year.
You might be forgiven for thinking that tourists alone will be able to sustain a cab firms business but this isn’t the case. You need to make sure you have regular custom from the locals as well. Perhaps you’ve managed to land a contract with a hotel (or two) which means you get “first go” on anyone who is staying there and doesn’t have transport of their own. They might need a friendly face to ferry them about the city so they can go to business meetings, or take in the sights. It could also be that your cab drivers are the first in line for airport runs as well.
This is just one example of how you can ensure you get regular business all year round however; if you intend to expand your taxi business there is always going to be the question of advertising. After all, you won’t get extra business if prospective clients don’t know you’re there! This is where third party advertising can really help.

What Is Third Party Advertising?

This is actually a very clever idea. We’ve all seen cabs rushing about the city with stickers on their bumpers, plastic type billboards on top of the taxi and even signs that are illuminated from inside. All of these are what’s known as third party advertising and it can really help not just your business but others as well.
For instance, you can contact various businesses in your local area like restaurants, hotels, tour operating companies and a whole host of others that will benefit from having their name on your cab. If you think this is going to need the hard sell, think again! You have a very strong argument when talking to various other business owners in the area.
Think about it? The average taxi driver across the State of Florida who operates in the major cities is passing by an ever growing population each and every day. In an average month a cab driver

Advertising Taxi Business in Florida.

Cost of Advertising to Sustain and Expand a Taxi Business in Florida USA

By JC

Miami, Tampa, and Orlando - the State of Florida has no small amount of big cities filled with interesting and engaging attractions.  Engaging attractions means tourists who come from across the globe to sample the sights and sounds.  Long distance travel means the convenience of your own vehicle won't be at hand.  All of this translates to a market for reliable and convenient travel options which, ends up creating a fertile spawning ground for any taxi company.  With the constant and steady flow of travelers, the state of Florida has enough of a market for even a fledgling company to get a solid start.

The problem comes in figuring out how a small company can get enough business to grow!  While a huge market can provide a business owner some awesome opportunities, it also makes it difficult to stand out from the crowd and gain the chance to expand.  This isn't a cheap industry; a new cab can easily cost $20,000 by itself and, a used one ends up being the same after factoring in repairs and maintenance.  Meters, insurance, cleaning, and permits can also add up quickly.  The state of Florida doesn't require a commercial license, though individual counties can have their own demands and fees.  Even if you've had some experience in the taxi cab business, it takes a lot of cash flow and delicate consideration to make sure your business not only takes root but flourishes.

Getting Your Name Out There

The best way to get the ball rolling is advertising, regardless of how small or large your business is it can only attract customers if people know about it.  No matter how you want to run your company, there are options of promoting that have a wide range of costs.  From the inexpensive to the extremely pricy, their effectiveness can vary greatly. It's more in how you use them than how much you spend.  Plenty of businesses in countless industries have lost large sums of money on poorly delivered advertising, while others have launched themselves into the spotlight on a shoestring budget.

The Internet

How people can and should advertise their services have changed drastically over the last few years and, this affects the taxi service industry just as much as it has affected everyone else.  The rise of the smart-phone has substantially diminished the power held by phone book advertisement.  If you're reading this hoping to find out why your ad in the yellow book isn't offering