| I don't agree. Uber is playing against a highly regulated market, with controls on supply, and also massive institutional incumbency which means inefficient pricing (the cab owners take huge out of the wages of the drivers), as well as just general inefficiencies. Also overlooked: quality of service. Everyone who I know takes Uber does it largely for the convenience of a) the app call, b) the payment and c) friendly drivers, clean cars. The 'added volume' of cars + 'better service' is absolutely growing the pie. As far as Instacart - well - so long as there is a good chunk of people who want the service and are willing to pay a surplus, then there is value add. I do not buy the premise of the article that there are some kind of systematic reasons for lack of profitability. The reasons for unprofitability have everything to do with lots of liquid capital, massive risk appetite by owners and investors, and same for the competition, creating very aggressive market-share combat scenarios: see Uber China, and Uber vs. Lyft in the USA. |