I am confused as to how Uber is still losing so much money. They have dominated the space, do not need to advertise to get customers and have a favorable revenue share off the labor of contractors. Seems like they should be a cash generating machine.
Here in Austin, the Leftists ran Uber and Lyft out on a rail. Utterly vicious, considering how ‘progressive’ the lift concept is compared to high-speed rail and buses and cabs.
I mean they slammed down on them like Thor’s hammer. I wonder if it’s because criminals can get around to ‘tasks’ untraceably with lifts.
Uber is basically built around an app for gypsy cabs. I have said for a long time that its current business model is seriously flawed.
It is quite odd.
“I am confused as to how Uber is still losing so much money. “
They are subsidizing drivers to gain market share.
Paying drivers
Uber was doing fine while they were able to transfer their risk to third parties. When they have to start meeting their responsibilities, the numbers don’t work nearly as well.
Liability for negligence - they claimed that the drivers were independent contractors, not employees. So what happens when someone is injured. Certainly most private insurance isn’t going to cover the driver while they are using their car for hire (check your own policy). So Uber ended up having to insure to cover the risk.
Intentional wrongdoing - they pulled out of Austin because that city was going to require them to screen out criminals. Uber realized that that might strike a deadly blow to their business models. Other cities have let them get by with faked paperwork (see Dallas) or minimal screening so that rapists can have a field day. (see San Antonio, Orange County, Sydney, Australia - the list is quite long, and dates back to at least 2014). Eventually, risk management costs will catch up with them.
Pay and benefits - drivers in some cities are chafing under the ‘contractor’ designation, and seeking minimum wage and fair treatment. It’s a typical labor - business dispute, with most of the country club Republicans on FR siding with the company on that issue.
It's the Bonus baby...
Make 50 rides in 4 days and get an additional $195 bonus.
“I am confused as to how Uber is still losing so much money. They have dominated the space, do not need to advertise to get customers and have a favorable revenue share off the labor of contractors. Seems like they should be a cash generating machine.”
They do not charge enough for rides.
here in San Francisco they are offering $4 rides practically everywhere.
It absolutely costs more than that for all costs associated with someone come in from somewhere, using their designed and supported technology, in a clean, well-maintained car, and dealing with you and driving you safely to your location.
Taxies are NOT overpriced. Taxi drivers are NOT overpaid.
Ubers and the like are 2-300% subsidized by venture capital. They are working on using that advantage - and the fact that they are almost totally unregulated - to unfairly destroy the heavily regulated, unsubsidized taxi industry.
Once taxis are out uber can charge what they want.
It’s like a bunch of restaurants suddenly entereing your downtown that have little to no regulations and can offer $1 lunches because the cost of the lunches are heavily subsidized. Of course they are losing money.