> I feel like I’ve been reading about the demise of Uber ever since they graduated from startup darling to media bad guy, yet somehow they continue to operate.

> I feel like I’ve been reading about the demise of Uber ever since they graduated from startup darling to media bad guy, yet somehow they continue to operate. That's easy enough to explain: Billions of dollars in the capital markets chasing ever-diminishing returns. But that music will stop eventually... at some point they won't be able to borrow money at vanishingly low interest rates, and their stock price won't bear raising capital in the public markets. At that point, unless Uber has massive costs in other areas that they can cut, they'll have to stop subsidizing rides, which means either continuing to cut fees to drivers which will further depress the supply side of their market, or jacking up rates, which will hurt the demand side. In both cases, there's an interplay--if the supply side drops off, wait times will go up and you'll have fewer riders. If the demand side drops off, you'll have fewer opportunities for drivers to make money so they'll leave the system. The result is a death spiral.