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Everything else they're invested in. Subsidizing rides (in new markets I think they sometimes pay the drivers more than the passenger pays) maybe. But new R&D,
by clay_to_n 10y ago
Everything else they're invested in. Subsidizing rides (in new markets I think they sometimes pay the drivers more than the passenger pays) maybe. But new R&D, lik building self-driving cars, doesn't come cheap.
- martinald 10y agoI think people are really underestimating how generous these subsidies are. They're not usually on the riders side, but the drivers. In Edinburgh, Scotland over NYE all Uber drives were on £75/hr minimum, regardless of how many rides they took. A friend of a friend who decided to ride for them that night said he was out for about 7 hours and picked up about 10 people the whole night (was very busy after midnight but quiet otherwise). The fares totalled about £150. So Uber probably got £30 but subsidised the driver by £525. Pretty crazy if you times this by all the 'newer' markets uber is in.