Investment by VCs is certainly not a “subsidy.” I worked for several VC financed young companies and they are looking for solid returns. If you miss your numbers, you get a new VP Sales. Miss again you get a new CEO. Miss again and half the company is looking for new work. It is brutally efficient and not for the faint of heart. But a “subsidy”? Ha!
I concede your point. Subsidy does not equal venture capital.
I was trying to illustrate that Uber/Lyft are similar to Tesla in that they only exist because they are being held up massively by outside investment. None of them have a profit making model.
The $5 rides people take downtown really cost $15. Which is what a cab would cost. The remaining $10 is made up by venture capital and by taxpayer subsidizing the many costs of the employees that employers are supposed to cover but Uber/Lyft are not.
They are trying to grab market share to the point where cabs go out of business (predatory pricing). I’d trust doesn’t succeed they hope to last until driverless cars, a fast fading possibility, come in at a price where they can stop using drivers and their capital (cars).
Similarly Tesla would be long gone if not propped up and I don’t see where they have a prayer of managing a profit although I’m not nearly as close to that business.