I don’t get why Uber isn’t profitable. Their marginal cost is only higher than zero because they choose to lose money.
Their fixed costs are servers and engineering. If they set their prices higher than what drivers are willing to accept they should make money.
I don’t see how “basic economics” is the enemy. Their enemy is setting expectations too high. If they were happy with a profit of $100M a year they would be sustainable forever.
Their fixed costs are servers and engineering. If they set their prices higher than what drivers are willing to accept they should make money.
I don’t see how “basic economics” is the enemy. Their enemy is setting expectations too high. If they were happy with a profit of $100M a year they would be sustainable forever.