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The problem is that Uber loses money on every ride, so they'll have to raise their rates as soon as they stop being subsidized by VCs -- unless they have self-d
by clock_tower 9y ago
The problem is that Uber loses money on every ride, so they'll have to raise their rates as soon as they stop being subsidized by VCs -- unless they have self-driving taxis by then.
- PacketPaul 9y agoHow are they losing money on each ride? They are not managing fleets of cars, employees, etc. It's an app.
- xigency 9y agoThat is exactly the question you should be asking, thank you. Answer is they provide great rates for passengers - see all of the anecdotal evidence here - and great pay for drivers. It literally is "too good to be true." It's just an app--with a $20B valuation and about as much in free cash.
- weberc2 9y agoOr they stop investing so heavily in platform development. Without detailed knowledge of their accounts it's hard to predict what might happen when capital shrinks.