Have we been hitching rides from a Ponzi scheme?
According to Hamish Douglass, an Australian fund manager who oversees US$50 billion worth of funds, Uber – the ride-share service that we are so dependent on after weaning off taxis – is a Ponzi scheme that has a 99-percent chance of going bust in the next decade.
“It’s constantly losing money and its capital-raising strategy is a Ponzi scheme,” he boldly declared at the annual Stockbrokers and Financial Advisers Conference in Sydney.
He also claimed during the conference that Uber’s existence will come under threat from the arrival of autonomous cars and that “When I look at Uber… I think of it as one of the most stupid investments in history.”
He added that Uber has been boosting their own valuation, which has led investors into jumping onto the bandwagon as the subsequent waves of fund raising exercises will see valuations jump higher than the previous ones.
Well, unless this man can prove otherwise… he can expect Uber to take some legal action!