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Every business in a competitive market is "barely profitable", that's how capitalism works. If a company is raking in massive profits that's a sign that the ma
by empath75 2y ago
Every business in a competitive market is "barely profitable", that's how capitalism works. If a company is raking in massive profits that's a sign that the market is distorted somehow -- a monopoly, collusion, regulation, etc..
- kibwen 2y agoYes, but P implies Q does not mean that Q implies P. IOW, a competitive market implies a lack of profits, but a lack of profits does not imply a competitive market.
- deleted 2y ago[deleted]
- camgunz 2y agoMaybe, but the point here isn't that Uber underperforms, it's that their innovations didn't sufficiently expand the market. I'm arguing cab companies saw that coming, whereas Uber/SV didn't and spent billions of dollars finding out. It's an indictment of the VC model where essentially you build a company that hogs all the value for investors. If you think this is a good model, i.e. that investors make better decisions than governments, labor, and the market, then I think you have to reckon with the utter wastefulness that is Uber. A better thing here would have been to just build a ride hailing app for existing cab companies.