Eli5: I saw that Uber is still not making money, how is that possible, they have a lot of people working for them, worldwide known and also if they dont make any money how are they still alive?
In: Economics
Uber is making plenty of money, and recently [did actually turn a profit.](https://www.fool.com/investing/2023/08/02/uber-is-profitable-for-real-this-time/)
So the question is how did it take 14 years to get to this point and why did investors put up with it for so long?
Investors are willing to play the long game. When a startup is … starting up … the first order of business is not to turn a profit, or make more money than you spend. It’s to build up your business so it can make a profit into the future. Uber has been dumping cash into subsidizing rides in new markets so they can secure a dominant market position — they want to be the default ride share company in your city before Lyft gets there. They’re also pouring cash into business expansions like Uber Eats and R&D projects like self-driving cars. Stuff that’s costing a lot to get set up, but will make a lot of money in the future once it’s established.
During this whole time, they’re making a lot of money, they’re just spending more. Once they establish a secure, stable business that’s resistant to competition, they can take their foot off the spending gas and start turning a profit. Which it looks like they have.
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