4 ms·
Maybe I don't understand the charts and the article you linked to but it says that: "Uber passengers were paying only 41% of the actual cost of their trips; Ub
by stoolpigeon 9y ago
Maybe I don't understand the charts and the article you linked to but it says that:
"Uber passengers were paying only 41% of the actual cost of their trips; Uber was using these massive subsidies to undercut the fares and provide more capacity than the competitors who had to cover 100% of their costs out of passenger fares."
To me that sounds like selling rides at a loss.
- tedsanders 9y agoOn an average cost basis that includes fixed costs, yes, Uber was losing money on each ride. But on a variable cost basis, Uber was making money. Each additional ride served was bringing them closer, not further, from profitability. Gross margins were positive even if overall margins were negative.