[ralph84]

If Lyft and (particularly) Uber can’t achieve profitability, they won’t just vanish. They’ll reorganize under Chapter 11 and shareholders will be mostly wiped out and creditors will become the new shareholders. Sure some people will lose money, but it’s not the disaster you’re making it out to be.

[moorhosj]

This is a vast oversimplification because these companies don’t exist in a vacuum. In my city, bus ridership is being crushed by Uber/Lyft (trains have been hurt less, but still impacted). In response the city has invested less in this infrastructure and lowered service levels. If these companies go belly-up today, they can’t make that change before tomorrow’s commute.

[ralph84]

The point of Chapter 11 is the company continues operating. To use a transportation example, all three of the largest airlines in the US went through Chapter 11 and never stopped flying during the process.

[moorhosj]

Yes, and all of those airlines have generated profits at some point, proving at least some viability. Uber and Lyft have yet to prove that.

Also, Chapter 11 allows companies to reorganize their debt. Debt was the main problem that airlines faced (pensions, etc.), not the problem Uber and Lyft face.