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Yes. Without billions of subsidies from VCs, both companies are long gone. I'll leave it up to you to conclude whether or not trading $0.60 for a $1 can last f
by exogeny 9y ago
Yes. Without billions of subsidies from VCs, both companies are long gone.
I'll leave it up to you to conclude whether or not trading $0.60 for a $1 can last forever.
- baldajan 9y agoIt doesn’t have to last forever, it just has to last longer than the competitor.
- TaylorAlexander 9y ago“We lose money on every sale but we make it up in volume.”
- adjkant 9y agoThis isn't intrinsically true. If they raise the prices, does the market go away? If they are able to outlast and go to self-driving cars, how profitable is that business when factoring in competition, possible regulation, or it even becoming a public utility?
- baldajan 9y agoYou’re underestimating the current oligarchy that exists. That’s why net neutrality is dead. You’re right, it’s not intrinsically true, but it’s pretty damn close to it... Side note: big companies generally die because they don’t take a real threat seriously, and by the time they do, it’s too late.
- ptero 9y agoCan you elaborate? Uber especially engaged in massive expenses on self driving cars, market share grabs, etc. But take those out and what remains seems to be a solid ride hailing business that should be able to generate stable profit. It needs to be less expensive than a taxi to generate a lot of demand, but this seems to be a pretty low bar.