Uber doesn't own the cars, doesn't pay for gas, the oil changes, the maintenance of the cars and doesn't pay hourly wages for drivers. How is that having tons of drivers working for them in such advantageous conditions, they cannot be profitable? Similar way it is weird that airbnb, having similar advantages than uber, cannot be profitable. Thoughts?
They charge less than costs.
What could be high margin industry here from Uber , lyfts perspective? Driverless taxi?
Are you new to software engineering? The compute, storage, network and all require massive money at that scale and software engineers salaries are high too due to the stressful jobs.
For these businesses to take off, it was important to draw customers away from traditional alternatives - like taxis and hotels. Ultimately customers do care about the price, so they offered their services at a much lower price than the traditional alternatives. These discounted prices were funded through money they had raised privately, so it attracted a lot of users. Over time other competitors also got into this space, not to mention the traditional alternatives caught up. So they were never able to fully rise to their potential, massive R&D investments that didn’t pay out, numerous litigations, dealing with employee exodus, etc. have gradually been chipping away at their revenues.
Because there is less room for an additional middle man than they thought.
They pay engineers too much
Car insurance isn’t cheap
IMO because competition is tough and money is better spent invested in growth than given back to shareholders equity. Better be very profitable in the future than little profitable today.
Don't think so. Uber sold self driving and flying car divisions and not profitable even after that
That’s doesn’t contradicts my point, it just means that the divisions they sold didn’t have a path to revenue growth high enough. Uber eats became pretty huge on the contrary and is still growing quickly. Once you have a monopoly type of situation on a market that is that big, your are pretty much de facto a cash cow
Tech Industry
Yesterday
3362
I do tech screens at Google. AMA
AMA
Yesterday
2700
I have worked at TikTok US core tech for 3 years. AMA.
Cars
Yesterday
1686
Cyber truck killer: Chinese version of EV truck
Health & Wellness
9h
717
Issues with sleep
Ask Blinders
16h
660
Why Pronouns shit captured US ? I don’t see this anywhere else
Software Engineers and infrastructure aren’t cheap