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I don't understand why uber couldn't be profitable? Every time anyone uses their app, they bring in x dollars in fees. Seems pretty lucrative to get multiple
by meowtimemania 3y ago
I don't understand why uber couldn't be profitable? Every time anyone uses their app, they bring in x dollars in fees. Seems pretty lucrative to get multiple dollars basically anytime a user opens your app.
- brianwawok 3y agoYou have to bribe drivers with rewards. The pool of people willing to drive around others for the actual $10 an hour they clear is not high enough to keep the market going (in many cities at least, sure it’s easier in huge cities)
- simfree 3y agoIt's not just the performance incentives that Uber and Lyft are paying either, they operate staffed offices in many markets to engage with potential, new and current drivers. Leasing office space, paying employees and doing this in each city costs real money, and you need this infrastructure to keep your pipeline of active drivers filled.