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Let's say they have 1M rides per day for an average of $10/ride. That's $10M in revenue per day. If they charged a flat 5%, that would be $500k in revenue per

Let's say they have 1M rides per day for an average of $10/ride. That's $10M in revenue per day. If they charged a flat 5%, that would be $500k in revenue per day, or $182.5M per year. Of course, they actually did about 13M rides per day in 2020, and they're taking a much greater slice than 5%. They should be printing money, not burning it. They only reason they're not insanely profitable is complete and utter mismanagement.

nemothekid 5y ago
>They only reason they're not insanely profitable is complete and utter mismanagement. It's hard to take this statement seriously, at least look into the business before making claims that it should be "easy". How did you come to your $10/ride number? Over what distance/time are those rides? How are those rides spaced during the day? How many drivers can you keep on standby to service those rides. Those questions are incredibly important into whether you can achieve a sustainable business that you have handwaved away into "$10/ride".
- linuxftw 5y ago
  5% of $10/ride would be $0.50/ride. Maybe they could charge a $0.50/ride flat fee for rides under $10. CC processing fees, retail, are about 3% and $0.30 each, so that can be added on to uber's cut as well. They did 5B rides in 2020. At $0.50/ride, that's $2.5B. That's enough to pay 1k employees $1M, and still leave $1.5B for infrastructure, business expenses, and profit. It's also a business that requires no on-going capital other than operating costs, it's not like they buying steel and stamping out widgets, it's practically free money. Right now, their revenue is over $2/ride, so what are they doing with all that cash? Nothing useful.