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"Uber is losing money because they subsidize rides to try to push competitors out of business." ?? I think thats the wrong way to phrase this. Uber is loosing
by grkhetan 9y ago
"Uber is losing money because they subsidize rides to try to push competitors out of business."
?? I think thats the wrong way to phrase this. Uber is loosing money as Uber and its competitors are giving a lot of incentives to drivers to win business. All of them are loosing money.
- Tepix 9y agoI think the original statement was accurate. And it's not working. Uber will have a rough awakening.
- pyrale 9y agoIt is interesting that you and him describe essentially the same mechanism with different words. I would personally call it dumping. In effect, Uber is selling something at a lower cost than it buys, in order to acquire the market.
- rogerdonaldson 9y agoNote that all companies in the ride-sharing market are doing the same thing, not just Uber. Uber in fact looses less money than Lyft per ride.