3 ms·
Uber and Lyft current pricing is currently subsidized by VC's.
by stevenwoo 9y ago
Uber and Lyft current pricing is currently subsidized by VC's.
- pdonis 9y agoEven if this is true (which it might well not be--VC investment money for a startup usually goes to build infrastructure, not to enable under-cost pricing; the former increases your runway while the latter decreases it), it's only for the short term; if Uber and Lyft don't start operating at a profit at some point in the near future, the VC investment will be gone and they will have a hard time getting more. Public transportation, by contrast, has been subsidized for decades, because it doesn't have to answer to market forces, only political ones.