
Ask HN: How is Uber losing money? - erelde
ELI5. I don&#x27;t quite understand where their money goes. I feel like once they got their applications, servers, law trouble resolved&#x2F;done, they shouldn&#x27;t have had any trouble. But by all accounts they are in a bad situation (financially and others ways also). It seems like something that should be able to run with some maintenance but not enough to lose money?
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onion2k
They subsidize a lot of the cost of rides. The driver earns more than you pay,
with Uber making up the difference. It's a marketing cost.

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cabtax
Investors have pumped in a lot of money looking to make even more, but while
uber remains a private company it is not accountable to those investors. When
management decides they have had enough they just close the doors and take
what is left. Just the M.O. you would expect. cabtax

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CyberFonic
Uber is fighting legal cases all over the world and in so many jurisdictions.
That all costs a lot of money for lawyers and management time which could
other wise be more gainfully applied.

The Uber business model is easily copied, e.g. Lyft, so they are subsidizing
drivers to keep them from defecting.

The biggest secret is that managements (and Uber is not alone on this) don't
really care about costs, it is only investors' money.

