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That's probably not how it works. Most of the rides itself will make some profit for Uber. However, Uber has huge fixed costs via free rides, ads, salaries, etc

by dx034 10y ago

That's probably not how it works. Most of the rides itself will make some profit for Uber. However, Uber has huge fixed costs via free rides, ads, salaries, etc. These will create the loss. So if you have a coupon and use it, it's quite likely that Uber makes a loss. But for most other rides, the driver will usually get a bit less than what you pay. It's just not enough to cover the company costs.

prostoalex 10y ago
> However, Uber has huge fixed costs via free rides, ads, salaries, etc. These will create the loss. Would those be essential at this point? Seems like everyone who wants a ride-sharing app has one, so their marketing expense should be substantially down by now. Startups typically keep the salary expenses controllable by compensating via equity (which does not have to be reported as expense unless one is doing GAAP), so it seems that it should be under control as well.