Why are service apps like Uber and DoorDash losing so much money despite being so popular? What are they spending all that money on?
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Amazon did something very usual. They ran at a loss for many years. But built themselves to a point where they are essentially a monopoly, under cutting all competitors. Once they reached monopoly status they switched and can make higher profits easily.
Uber etc are all trying to repeat that process.
Whether it is in the public interest, and should be legal, is a different question.
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