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What makes Uber capital intensive? I would have thought something like a steel mill would be capital intensive, Uber less so.
by TheSpiceIsLife 2y ago
What makes Uber capital intensive?
I would have thought something like a steel mill would be capital intensive, Uber less so.
- karagenit 2y agoArguably because it’s a two sided marketplace (matching drivers to riders) the network effect is very strong, so to have any success you have to dump a ton of money into marketing to gain enough users to make the app viable.
- bcherny 2y agoMy understanding is it's this, then having to repeat it over and over for each city (network effects are within a city, mostly).
- Cacti 2y agoBecause they’re burning money.