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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During the gilded age the robber barons of the time created Wall Street and the federal reserve systems to be funnels of money to their own central banks. In retrospect it’s pretty predictable since they were robber barons but at the time they just called them “industrialists”.
This bad piece of source code set up a system that worked when there was only 2 billion people on the planet and no internet but has accelerated the dysfunction since then.
Now we have 8 billion people all doing business 24/7 and it becomes very obvious in companies like Uber and door dash.
The third law of thermodynamics states that energy is neither created or destroyed, it’s just rearranged. The robber barons needed everyone to believe that money, business, and the economy were not subject to the laws of physics because that would make them accountable for clear cutting forests, mining to oblivion, polluting water sources etc.
Objectively it’s pretty easy to see that they were wrong because the earth has finite resources so obviously the economy is NOT the only thing in the known universe that isn’t subject to the laws of physics.
When a tech bro siphons off a couple billion of an artificially inflated valuation on a company that has no real assets and doesn’t actually make anything, he is effectively a parasite that bleeds more blood out of the host than the host creates. It works for a while, until it doesn’t.
Uber doesn’t own the cars, the drivers do. And all those cars need oil and tires and batteries etc to stay functionally maintained.
This starts a clock. And since the tech bro/parasites won’t give back any of the blood they drained, the cars owners take the hit and it becomes a race to the bottom.
But all the other Wall Street thieves have a vested interest in prolonging the con because their “value” is tied in to the stock price of a company that is worth 1/10th what they bought into it for.
Short answer- the whole system is corrupt and broken
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