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You’re forgetting the cost to develop the software itself. It’s like saying a gigabyte of data on a wireless carrier cost them pennies in electricity and bandwi
by guntars 7y ago
You’re forgetting the cost to develop the software itself. It’s like saying a gigabyte of data on a wireless carrier cost them pennies in electricity and bandwidth.
- bmm6o 7y agoIt's still not a per-ride cost.
- SilasX 7y ago>You’re forgetting the cost to develop the software itself No, I'm (correctly) excluding it from the list of things they have to pay for to provide one more ride. >It’s like saying a gigabyte of data on a wireless carrier cost them pennies in electricity and bandwidth. It's more like: Verizon is unprofitable. People keep repeating the claim that, "lol, Verizon mobile actually loses money for every byte of data they transmit to you." I reply that, "No, Verizon loses money in the aggregate. The cost of sending one more byte of data, on average, is less than they charge for it, but not by enough to cover their fixed costs."
- guntars 7y agoI understand how "cost to provide one more ride works", I'm just saying that it's a bit of an accounting fiction and has little to do with whether they can or cannot be profitable. It also confuses people into thinking that running a telecom is just pure profit and that they're getting ripped off. That's why I used that example.