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Romanian_ t1_jdbxwd3 wrote

Reply to comment by Xanthn in Alameda passes delivery fee cap even as Uber threatens exit by Xanthn

These are mostly public listed companies, their financial reports are available. None of the delivery / ride-sharing companies really make profits. That's the reality, not some made up stunt, like you claim.

Uber as a whole had 2 profitable quarters in 14 years. Uber Eats as a subsidiary recently broke even for the first time. Lyft, Door Dash, Postmates etc - are not profitable.

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Xanthn OP t1_jdbys7g wrote

I wonder if them giving bonuses to sign up drivers and the amount of money that the CEO and other execs get paid actually make a difference in the loses. I mean somehow the CEO got around $20 million in 2021, $40 million odd a few years earlier, and since a lot of that seems to be related to stock, others also would be getting millions. Something doesn't then add up, how are they not making money and still pay out this sort of money?

Edit: spelling.

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Captain_Mazhar t1_jdczumy wrote

For the last decade, venture capital was throwing billions and billions of dollars at startups who could afford to burn reserves because money was cheap, betting on market share over current profitability.

Now that money is getting more expensive, we are coming into phase 2 of that, and we will see who remains when the flood of cheap money dries up.

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Atlasatlastatleast t1_jdc5auv wrote

Is that not because of reinvestment of revenue?

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Buckets-of-Gold t1_jdcgsgm wrote

It’s because Uber and its competitors have hemorrhaged money nearly every quarter of their existence.

They are relying on autonomous vehicles or complete market domination to become profitable. They will probably go bankrupt.

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simplifysic t1_jdpse6f wrote

Uber is hugely profitable. They aren’t in business to deliver food silly. The customers they serve are the execs and shareholders.

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