| For a simplified version of the app with arguably no worse user experience, it's not THAT farfetched. Uber has an absurd amount of logging & analytics. If the app was simply drop a pin, get a ride - it wouldn't be that crazy. Uber has 3.9M drivers world wide. There's probably very rarely more than 1M drivers active at any time. Probably less than 300k people looking for a ride at the vast majority of times. Assuming you can update the driver's location 1 time per minute - that's
~1.5B requests per day - less than 25k requests per second (including user bookings). That's like ~2TB of bandwidth per day. That's less than $200 per day. Almost everyone spends more than 5% of their cloud bill on bandwidth. Meaning, the rest of a drastically simplified (but nearly equally useful) Uber could run for ~$4000 per day in server expenses. That's a $1.4M / year data center. Uber has revenues of >$11B. They could be making a lot of money. They just aren't because they're spending AT LEAST 50x more on servers and product engineering than they NEED to. They paid for growth for a long time. They have a monopoly now. There's not a lot of growth left to get. At some point the axe will come down. Lyft is even worse. They're ~1/3rd the size. |
Cost of revenue in just terms of infrastucture was measured in $/ride and minimizing it reliability is difficult, especially if you're a fast growing startup and on cloud providers. Unfortunately, if you're a fast growing startup you also don't usually run bare metal (even though I'm a fan of colo/OVH/Hetzner).
Don't forget that money used to free, with the way interest rates and investors were. It's far more difficult cutting down, than it is to throw money around, obviously.