This is a great point. A crowded market means there's lots of space for new entrants and that no one has quite figured out how to win the whole thing. Good opportunity to steal and borrow from the best currently in the…
You're exactly right though, and that's the problem. People won't pay to use the service if Uber charges what it actually costs to deliver it. They're heavily subsidizing each ride. When you pay for an Uber, they're…
If you're losing money on every ride, then your aggregate profit on all rides will be in the negatives. More volume just makes the total loss bigger, because that's more money you've been giving away.
This is a great point. A crowded market means there's lots of space for new entrants and that no one has quite figured out how to win the whole thing. Good opportunity to steal and borrow from the best currently in the…
You're exactly right though, and that's the problem. People won't pay to use the service if Uber charges what it actually costs to deliver it. They're heavily subsidizing each ride. When you pay for an Uber, they're…
If you're losing money on every ride, then your aggregate profit on all rides will be in the negatives. More volume just makes the total loss bigger, because that's more money you've been giving away.