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I'm not convinced that ride shares are unsustainable. The average fare I've paid is certainly greater than the cost of paying the driver's wages and gas for the
by RandallBrown 6y ago
I'm not convinced that ride shares are unsustainable. The average fare I've paid is certainly greater than the cost of paying the driver's wages and gas for the vehicle.
The difference should more than make up for the cost of maintaining an app in the long term so I don't see any reason that some company can't eventually be profitable in this space.
Flywheel was (still is?) a too little too late attempt by taxi companies to stay relevant and as far as I remember, it didn't even work very well.
- arcticbull 6y ago> The average fare I've paid is certainly greater than the cost of paying the driver's wages and gas for the vehicle. If that's the case then why do they have a -81% GAAP margin? [1] [1] https://www.nakedcapitalism.com/2020/08/hubert-horan-can-uber-ever-deliver-part-twenty-three-ubers-already-hopelessly-unprofitable-economics-take-a-major-coronavirus-hit.html https://www.nakedcapitalism.com/2020/08/hubert-horan-can-ube...
- RandallBrown 6y agoI have to imagine it's because of marketing and R&D. If they dramatically reduced both of those things, I don't see why they couldn't run a more modest and profitable business.
- arcticbull 6y agoCorrect, however, as part of their marketing expenses, they include the discounts they offer riders to use their service, which reinforces my point.