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In the case of rideshare/delivery companies on the list like Uber, Lyft, and Doordash, the bulk of their expenses/losses aren't salaries, it's in subsidizing ev
by KoftaBob 4y ago
In the case of rideshare/delivery companies on the list like Uber, Lyft, and Doordash, the bulk of their expenses/losses aren't salaries, it's in subsidizing every ride/delivery to compete on price while still compensating drivers enough for it to be worth it to them.
In other words, Uber didn't burn $30B on salaries, it burned it selling $1 bills for $0.70 over and over and over again.
- treis 4y agoThis is just not true. Uber and Lyft definitely sell rides for more than they pay out to the driver. Lyft, as an example, has 3.9 billion in revenue against COGS of 2.2 billion.
- KptMarchewa 4y agoThey hide that expenses in marketing.
- woeirua 4y agoNot if they don't want to go to jail for fraud. These are publicly traded companies.
- kasey_junk 4y agoIt’s not “hidden” in that it’s not on their financial statements. It’s that churn of drivers and adding of passengers is accounted for in their marketing budget so if you want to do a fair comparison of cost per ride you need to figure out how to break out that component. It’s no different than any other companies marketing budget and is definitely not fraud.