Uber's business model is unsustainable and unlikely to ever make any money, a new report claims.

When the ride-share service debuted on the New York Stock Exchange, its IPO price was $45, making it second largest in history, behind Facebook.

It led several investors and the public to believe that the company had a high corporate value that was continuing to grow.

But in fact, this was a result of political propaganda and media manipulation, according to an article in the latest issue of the journal American Affairs by Hubert Horan.

The company had been hiding their business model for years, claiming that it was growing from technology and taxi industry breakthroughs, when it had actually done no such thing.

The journal states that Uber has produced massive amounts of private wealth without benefits for consumers, drivers, or the cities it operates in.

TOP 7 MOST DAMNING QUOTES ABOUT WHY UBER'S BUSINESS MODEL IS DOOMED TO FAIL 1. 'Uber's most important innovation has been to produce staggering levels of private wealth without creating any sustainable benefits for consumers, workers, the cities they serve, or anyone else.' 2. 'Uber...has failed to reduce car service costs, and it hasn't meaningfully improved productivity. Far from revolutionizing the future of transportation, Uber has not solved any of the industry's long-standing structural problems.' 3. 'Uber and its supporters put forward a variety of vague, unsubstantiated, and constantly changing PR claims designed to mislead the public into thinking its popularity actually had something to do with powerful efficiency breakthroughs.' 4. 'Uber's costs are higher than traditional cab operators, and nothing in Uber's IPO prospectus offers any clue as to how it could ever reduce its costs to the point where they became competitive with mass transit or private cars.' 5. 'Uber was the first company to build its entire PR program around the emotive propaganda-style narratives that have long dominated partisan political campaigns.' 6. 'Uber clearly undersupplied safety, insurance, and basic consumer protections relative to even the minimal levels regulators had required.' 7. 'Uber always depended on pursuing artificial market power and destroying any constraints on the exercise of that power' Advertisement

A new article reports that Uber will never be a profitable company because its model produces private wealth without benefits for consumer or drivers. Pictured: The logo for Uber appears above a trading post on the floor of the New York Stock Exchange, May 2019

Uber currently collects more than $45 billion in gross passenger revenue and holds a 73 percent market-share for ride-sharing, reported CNBC.

However, when Uber priced its initial public offering at $45 per share, it shocked some industry experts.

At the end of May, the company reported that its share price was trading more than 10 percent below its IPO.

And its first quarterly report as a public company, Uber reported a $1 billion loss, saying it was building up its other businesses - such as food delivery - and that 2019 would be a year of growth.

In fact, by one measure, Uber's IPO was called the worst ever in US stock market history, after the company's stock plunged 7.6 percent on the first day of trading.

But American Affairs reports that Uber has had an unsustainable business model for years prior to its IPO.

The company allegedly had GAAP (Generally Accepted Accounting Principles) net losses of around $15billion between 2015 and 2018.

Because Uber was the only company offering detailed data, it wasn't understood how it poorly the company was faring.

The journal reports that the only reason the company's profit margin rose (albeit from -135 percent in 2015 to –35 percent in 2018) is that it reduced the take home pay of its drivers significantly, to about minimum wage, not by cutting costs elsewhere.

In fact, every time Uber gets a new driver or enters a new city, its cost rise - and its costs are higher for vehicles, corporate expenses, and driver compensation than traditional taxi operators.

Uber stock plunged 7.6 percent on the first day of trading last month in one of the wort performance in US market history. Pictured: Ronit Belson catches her UberX driver Dan Pedrovic at Los Angeles International Airport, January 2016

The only category that Uber has lower costs in is fuel.

Therefore, its perception of creating technology and taxi industry breakthroughs has all been a result of media manipulation.

According to American Affairs, Uber was among the first to use smartphones to hail cabs, but several other operators, including traditional taxis, have replicated the model.

In fact, the journal says the technology the company is uses is not more sophisticated than what other transpiration industries, such as airlines, use.

Uber's business model has not forced out other competitors and has failed in countries such as China and Russia.

The article reveals how former Uber CEO Travis Kalanick (pictured, February 2019) fostered a toxic 'growth at any cost' corporate culture

The reason why Uber had never driven out competitors and made profits, like Amazon and Facebook have, is because there it never built a base.

'The market power of companies like Amazon and Facebook was the result of their size, industry dominance, and immunity from new competitive threats,' writes American Affairs. 'It was not created by their user interfaces.'

Additionally, Uber had to convince Silicon Valley investors - and the public - that any problems within the traditional taxi industry were caused by regulation so that the company would not have to deal with oversight from the government.

Executives claimed that deregulation would result in shorter wait times, lower fares and higher pay for drivers, none of which was backed up by data.

American Affairs states that in the 1980s, several cities de-regulated the taxi industry, then reversed course after productivity actually decreased.

'Uber is important because it also illustrates that propaganda techniques can be just as powerful in corporate settings as they have been in partisan political settings,' the author writes.