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So it's a game of "who can lose money the longest?" I guess the customer's win for as long as the VCs want to pour money into it. It's hard for me to believe

So it's a game of "who can lose money the longest?" I guess the customer's win for as long as the VCs want to pour money into it. It's hard for me to believe that's a winning strategy... even if you outlast the competition, eventually you have to start making money and as soon as you raise prices again, competition can start back up. I'm probably underestimating network effects.

CamelCaseName 10y ago
Simply because you are burning cash, doesn't mean that the value of your company is falling. I know it's tempting to see it that way, especially since uber is as large as it is, but the winning strategy is also to survive as the dominant player until self-driving cars are commonplace. Then you replace the drivers with cars, and thanks to your network you have a huge first mover advantage in the driverless taxi industry. It's during the initial period of this stage that you would see the most profits, and then as more companies enter the market you would begin to have to compete on price and quality.