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That "marketing" budget is not going to billboards, radio spots and banner ads, it's going to voucher codes and driver "performance bonuses". It's just subsidie
by lozenge 4y ago
That "marketing" budget is not going to billboards, radio spots and banner ads, it's going to voucher codes and driver "performance bonuses". It's just subsidies by another name.
- treis 4y agoAgain, just not true at all. Here is Lyft's financial statement: https://investor.lyft.com/news-and-events/news/news-details/2022/Lyft-Announces-First-Quarter-Results/default.aspx https://investor.lyft.com/news-and-events/news/news-details/... They have 875.5 million revenue against 440.3 million COGS and 126.3 million in Sales and Marketing. Even if every dollar of sales and marketing was a direct subsidy they're still taking in 308.9 million as gross profit. Or, in other words, they're taking 35% or so of fares.