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> Uber can choose to stop the subsidizing, which can then make the unit economics positive. How much will their market share fall when they do this though? And

• chii 4y ago
  > How much will their market share fall when they do this though? who knows? But if their competitor is going to subsidize, but uber doesn't then they'd lose most of their marketshare. But the same story would be true for their competitors. So the subsidy would drop slowly for every player in this market, until they reach an equilibrium, where the final margins for every player is as thin as possible but still pay the bills.