3 ms·
I keep reading that Uber uses VC and other cash to subsidise rides. But if 25%, 30%, or whatever is Uber's cut then I feel like the VC cash is less about subsid
by mprev 8y ago
I keep reading that Uber uses VC and other cash to subsidise rides. But if 25%, 30%, or whatever is Uber's cut then I feel like the VC cash is less about subsidising rides and more about subsidising the Uber infrastructure.
It might be a nitpick, but if a $10 ride already feels cheap and the driver only gets $7, then to some extent the driver is part of the chain of people subsidising the ride.
- ghaff 8y ago>to some extent the driver is part of the chain of people subsidising the ride That's almost certainly true in many cases. I don't know if it's some drivers or most drivers, but it's almost certainly fair to say that many drivers underestimate the cost they're incurring by driving for Uber/Lyft. (Or they understand the costs but don't feel they have a choice because they need the cash in hand today and they'll deal with getting new tires next year.)
- marcosdumay 8y agoAround where I live, people are abandoning Uber everywhere because there is a cheaper competitor (with smaller cuts for the drivers, and smaller prices for the rider). And Uber still didn't have any profits here.