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by kasey_junk 2224 days ago
They’ve never been profitable. You can’t stay profitable when your entire unit economics is messed up.
1 comments
zhdc1 2224 days ago
Their unit economics are fine. They have a gross margin of 6-7% after taking out attributable operating costs (so, IT + customer support + insurance + w/e).

Unless if I'm looking at the wrong numbers, they're literally killing themselves on sales, marketing, and driver incentives.

It's "stupid" that's killing them, not the dynamics of the ride share market.

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kasey_junk 2224 days ago
Without driver incentives they lose the drivers. Upping prices to compensate the drivers correctly and they lose the customers.

They are locked into a classic problem for 2 sided markets with low barriers to entry.

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