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The reason it's so big is they're burning VC cash to subsidize rides. So yea when billionaires are paying your taxi fair to try and drive the local taxi firms

The reason it's so big is they're burning VC cash to subsidize rides. So yea when billionaires are paying your taxi fair to try and drive the local taxi firms out of business naturally they're everywhere. But when that cash runs out the necessary price hike could just as easily drive them out of business. It's not like the drivers have any great loyalty. We really need pro-competition legislation to stop this sort of predatory capitalism.

VMG 9y ago
> We really need pro-competition legislation to stop this sort of predatory capitalism. That's a non-sequitur
- bogomipz 9y ago
  >"We really need pro-competition legislation to stop this sort of predatory capitalism." This conclusion refers to the idea of VCs(billionaires) subsidizing rides in order to remove the entrenched player(taxis.) How is that a non-sequitur?
  - mediocrejoker 9y ago
    It sounds like the parent poster is saying that "pro-competition legislation" would prevent a new company (funded by VCs) from competing with an entrenched industry (taxis). I think the confusion stems from saying pro-competition legislation will prevent competition.
  - VMG 9y ago
    What's bad about VC billionaires giving cheap rides to other people?
    - bogomipz 9y ago
      It wasn't my comment. I was just commenting on it not being a non-sequitur.
Pica_soO 9y ago
billionairs can get burned too
- emodendroket 9y ago
  Yes, but the ill effects are wildly out of proportion.
vostrocity 9y ago
People keep saying Uber is burning cash, but their core business model is sound: $5 per hour per driver goes to Uber Assume 80,000 drivers (half of # U.S. Uber drivers) drive 8 hours a day, 7 days a week 52 weeks in a year 5x8x80000x7x52=$1,164,800,000 So about $1.1 billion just in the US. The only expenses are at headquarters (engineering, operations, design, legal, marketing, support) and the tiny field support offices they have in each city (local, entry-level employees).
- pcnix 9y ago
  As far as I know, Uber loses money on driver incentives and stuff like pool/share options, where they pay the driver the amount over the discount granted to the customer. I'm assuming a lot of such tricks are how they keep their drivers, and this is what they spend money on.

VMG 9y ago

> We really need pro-competition legislation to stop this sort of predatory capitalism. That's a non-sequitur

bogomipz 9y ago
>"We really need pro-competition legislation to stop this sort of predatory capitalism." This conclusion refers to the idea of VCs(billionaires) subsidizing rides in order to remove the entrenched player(taxis.) How is that a non-sequitur?
- mediocrejoker 9y ago
  It sounds like the parent poster is saying that "pro-competition legislation" would prevent a new company (funded by VCs) from competing with an entrenched industry (taxis). I think the confusion stems from saying pro-competition legislation will prevent competition.
- VMG 9y ago
  What's bad about VC billionaires giving cheap rides to other people?
  - bogomipz 9y ago
    It wasn't my comment. I was just commenting on it not being a non-sequitur.

Pica_soO 9y ago

billionairs can get burned too

emodendroket 9y ago
Yes, but the ill effects are wildly out of proportion.

vostrocity 9y ago

People keep saying Uber is burning cash, but their core business model is sound: $5 per hour per driver goes to Uber Assume 80,000 drivers (half of # U.S. Uber drivers) drive 8 hours a day, 7 days a week 52 weeks in a year 5x8x80000x7x52=$1,164,800,000 So about $1.1 billion just in the US. The only expenses are at headquarters (engineering, operations, design, legal, marketing, support) and the tiny field support offices they have in each city (local, entry-level employees).

pcnix 9y ago
As far as I know, Uber loses money on driver incentives and stuff like pool/share options, where they pay the driver the amount over the discount granted to the customer. I'm assuming a lot of such tricks are how they keep their drivers, and this is what they spend money on.