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by icebergonfire
1847 days ago
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> out of the 22 dollars the customer paid for the delivery, I received 5.61 before tip I am completely ignorant on how this works on the driver’s side, so I could be missing something here: Those 22 dollars the customer paid include whatever food you were delivering, right? Now, I’m sure the Food cost/Service cost split changes from country to country (I’m somewhere in the Euro zone)… but interpolating from those numbers, I get the feeling that Uber must be subsidizing the service very heavily. They don’t charge that much extra money to the customer, so I wonder where the profit is coming from. I’m having trouble conceptualizing how they are making any actual profit after expenses, and in the meantime they (and their ilk) are pushing the traditional restaurant delivery network away since they cannot compete or price nor convenience. I don’t have a conclusion for this train of thought, just a bit of shock here in the early morning. |
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They're not. They aren't profitable. They have never been profitable. They admit that they would not have been profitable even without COVID last year. They do not expect to be profitable until Q4 of this year - if you remove half their costs and their assumptions hold. They do not expect to actually be profitable (even on EBITDA) for even longer.
http://techcrunch.com/2021/02/12/will-ride-hailing-profits-e...
> in the meantime they (and their ilk) are pushing the traditional restaurant delivery network away since they cannot compete or price nor convenience.
https://en.wikipedia.org/wiki/Predatory_pricing