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Indeed, but when the net is 20% of that it feels pretty misleading (at least to me). "Cut of money the drivers take" being 80%? The wording feels very off
by jcdavis 11y ago
Indeed, but when the net is 20% of that it feels pretty misleading (at least to me). "Cut of money the drivers take" being 80%? The wording feels very off
- seattle_spring 11y agoIsn't Amazon's profit margins on sales something like 5% or worse? This doesn't seem any more disingenuous than most other businesses.
- jcdavis 11y agoLyft doesn't take inventory risk, has a fixed fee structure and doesn't perform most of the actual service (the drivers do). If you want to geek out, there are actually some standards for reporting gross vs net, see EITF 99-19 http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1218220143525&acceptedDisclaimer=true http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=121... Look at Square's S-1 for example, you won't find the phrase "gross revenue" once in the entire document - revenue = net, and they use "Gross Payment Volume" instead.
- deleted 11y ago[deleted]