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“Ridesharing isn’t a profitable business” - this isn’t true. Uber and Lyft both have many cities that have positive unit economics. IIRC the North American mark
by 0xB31B1B 8y ago
“Ridesharing isn’t a profitable business” - this isn’t true. Uber and Lyft both have many cities that have positive unit economics. IIRC the North American market as a whole is profitable for both companies. Both companies are losing money because they are plowing into more and more growth (a la amzn), not because the business is bunk.
- subway 8y agoBoth Uber and Lyft punt massive operating costs onto their semi-disposable drivers.
- mlthoughts2018 8y agoAll available data so far has not shown what you claim, except I believe for the borough of Manhattan (not even all of NYC), and even that is questionable because of all the widely reported accounting shenanigans Uber has pulled with including full prices in their revenue numbers instead of subtracting out large fare discounts or government fares, etc., from top line revenue. But regardless, nobody would question if a taxi operation is profitable in a small region with correctly calibrated ride supply in outlying areas. Even if a single company banded together a few such profitable regions around the world, it wouldn’t be surprising. However, it would be surprising if you claimed that company had a valuation of tens of billions of dollars while operating on annual losses of ~7 billion dollars. That would make no sense at all.