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That's what happens when you cannot rely on spending other people's money to prop up your business. It's honestly so destructive for these anti competitive bus
by chillwaves 6y ago
That's what happens when you cannot rely on spending other people's money to prop up your business.
It's honestly so destructive for these anti competitive business practices to pour VC money into a market.
- graeme 6y agoUber and Lyft aren’t unprofitable at the margins in developed markets. They instead spend money expanding. Back in 2016 Uber says it was profitable in places like California. Why would VC spend billions to permanently give free rides to Californians? It just doesn’t make any sense. https://fortune.com/2016/06/16/uber-profitable-markets/ https://fortune.com/2016/06/16/uber-profitable-markets/
- learc83 6y agoThat’s not what Forbes has been saying about Uber since 2017. Look up more recent Uber article by them. One accuses Uber of creative accounting to attempt to make the rideshare business look profitable.
- graeme 6y agoI looked. The articles aren’t actually saying that the rides have a negative profit. Only that margins are low (which is quite plausible) The article is consistent with both of our beliefs, i.e. it’s vague as to whether losses are intrinsic to rides, or whether margins are low + there are expansion costs. https://www.forbes.com/sites/lensherman/2019/08/22/ubers-dubious-path-to-profitability-is-not-a-meme/#4d10ecac15cf https://www.forbes.com/sites/lensherman/2019/08/22/ubers-dub...