It's just an app, connecting drivers to passengers and take a cut in between. Why would somebody lose money in that model? Here's why These guys make money in usa don't give incentives to drivers. They give huge incentives to drivers in India, they don't make money in India, instead they give money in return the drivers to keep costs low for rides. This is how they're fucked up, they might be doing it in other countries too. #uber
hm pls someone hire this marketing and sales guru after layoffs will happen at MS
I’d like to know more about this too. Uber literally bleeds billions of dollars a year. Curious for more insights.
Read the 10K and 10Q like an adult already
They pay Rs.5000/- rupees in return every day in return to drivers if they can make 10 or 15 rides (don't remember exactly). That's where they are burning their cash. It might be same in other markets. Make money in usa and burn it somewhere else hoping they will make money in future. But, they will never make money in markets like India. If they cut incentives to drivers, ride cost will increase which will reduce the business.
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To enter the market Uber has to do lot out ground work. Anyone can build an app. It takes money to attract customers and business partners. Then they have their FTEs to pay and their infrastructure. It’s not just an app. Also, they have to compete with local drivers’ association in some places.
yes, I agree. There's a huge cost involved in incentives they are giving to drivers too, it's not disclosed. This I learned when I recently went to India and had a talk with drivers. Drivers themselves are surprised at how somebody could give free money in return.
Cos. They pay 250k for a guy who alters parameters of the surge pricing model.
Haha. true
Those incentive budget are literally pennies to Uber. They are losing money because of operation cost and r&d, they are dumping billions into autonomous vehicles.
The incentive budgets are a lot actually...
there are driver incentives in the US too
Incentives given to drivers in usa are different, they take less commission for high performing drivers (more rides), it's win-win for both. In India it's different, all drivers are given incentives, it's huge money when you combined the number of drivers, it's definitely not peanuts. India is an example I know of, they might be following similar procedure in other countries too.
ok I thought u were referring to the big bonuses new drivers get. if they stop after the bonus, then Uber took a loss. it was huge in some cities to get the driver pool up
The cost per ride in India is super cheap, even by the Indian standards.
The reason it's super cheap is because of incentives drivers receive from Uber. Otherwise, there's no way any business conscious driver can provide rides at such cheap prices. This is a vicious circle created by these companies hoping they could make money in the future by pulling out incentives, they'll never be able to do it, people will go to autos the moment they increase prices a lot.
Ever heard of salaries?