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What's the game plan here? Burn investors money by offering cheap rides until...self driving cars can take over? It seems Uber and Lyft are both heavily subsidi

What's the game plan here? Burn investors money by offering cheap rides until...self driving cars can take over? It seems Uber and Lyft are both heavily subsidizing the actual cost of the ride and paying for that out of pocket. I use both services (Lyft preferably) when travelling to a country with drivers, and I'm not sure I've ever paid full price for a ride. "$25 credit" "50% off" "half price all weekend" promos seem to be coming in constantly. Is either company building a viable business? Or will usage sharply drop off once they have to eventually charge a realistic rate for a ride? Or are the drivers just a temporary casualty and the plan is to get rid of them completely ASAP?

JimmyAustin 9y ago
I'm not sure what Lyft's story is, but Uber is profitable in developed market, but is pouring enormous amounts of cash into expanding as rapidly as possible. I believe that if they cut back growth efforts, they can hit profitability relatively quickly, but this would probably bring the valuation down from the sky high level that it is at the moment.
eganist 9y ago
Uber subsidizes some rides even without discounts. Just a few nights ago I paid ~$17 for a pool ride where 1) I was the only passenger the entire length of the ride and 2) the driver was paid ~$21.
- rb808 9y ago
  presumably that is balanced by the times when there are two riders paying $17 and the driver is paid $21.
kungito 9y ago
I use Uber about once a month in various EU countries and I never get a discount? How do I get where you are?
tibiapejagala 9y ago
Not relevant to you questions, but I'm shocked about the discounts. My only ride without paying the full price was the first ride. For the record it has been like this in Poland since 2016. It is cheaper here, but at the same ratio vs. taxi prices. Also no uber pool here or Lyft at all here.

JimmyAustin 9y ago

I'm not sure what Lyft's story is, but Uber is profitable in developed market, but is pouring enormous amounts of cash into expanding as rapidly as possible. I believe that if they cut back growth efforts, they can hit profitability relatively quickly, but this would probably bring the valuation down from the sky high level that it is at the moment.

eganist 9y ago

Uber subsidizes some rides even without discounts. Just a few nights ago I paid ~$17 for a pool ride where 1) I was the only passenger the entire length of the ride and 2) the driver was paid ~$21.

rb808 9y ago
presumably that is balanced by the times when there are two riders paying $17 and the driver is paid $21.

kungito 9y ago

I use Uber about once a month in various EU countries and I never get a discount? How do I get where you are?

tibiapejagala 9y ago

Not relevant to you questions, but I'm shocked about the discounts. My only ride without paying the full price was the first ride. For the record it has been like this in Poland since 2016. It is cheaper here, but at the same ratio vs. taxi prices. Also no uber pool here or Lyft at all here.