[iofj]

Apparently they run at a loss in new cities for months even into years. They give away tons and tons of free rides on the client side and actually pay drivers more than they get in payment (even ignoring their overhead) until they can guarantee a pretty full day of driving people around.

So they need billions to sponsor these expansions.

As a non-public company, nobody's really seen their financials. So it could be anywhere from the next Google/Facebook to a complete scam. Only a few people have the information to know either way.

[douche]

I almost think that it would be worth it to subsidize Uber to keep operating, even in areas that they could never break even. I live in an area that, technically, has some taxis services, but they are incredibly bad, unsafe, and over-priced. Uber is a fantastic option here, far better quality and cheaper than the existing services.

[pkaye]

I'd be okay with that as long as private investors are subsidizing it.