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>If you lose 50 cents on every ride, how do you make it up in volume? They "lose 50 cents" per ride at the current volume but their fixed costs only go up slig
by alasdair_ 7y ago
>If you lose 50 cents on every ride, how do you make it up in volume?
They "lose 50 cents" per ride at the current volume but their fixed costs only go up slightly for each ride, so at double the volume, they could be turning a profit instead of a loss.
The number isn't really related to their actual marginal cost of providing the service.
- deusex_ 7y agoThe loss comes from variable costs, not fixed costs. Early on, they hoped to become monopolies and raise prices, reaching profitability.