“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”
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They make no profit because they are spending all their revenue and then some. This may seem like a bad thing but it’s mostly due to them investing in expanding the business than their product being bad not able to make money. When a company has room to grow sustainably, it’s better to invest money back into the company to help it grow larger rather than taking a profit. This will create more value for the shareholders because the total value of the company will grow as it grows in size. When it has gobbled up as much market share as it reasonably can, a company wil then begin opting to maximize profit and create value for shareholders by payong out that profit in dividends and buying back stock to drive up the price.
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