“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”
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If I sell quality hamburgers, that taste good, for $0.50 each, I’m likely to sell a lot of hamburgers. There would probably be lines of people waiting to buy as many of them as they could.
If it costs me $1.00 for each hamburger produced, I’m losing money. I may be selling billions, and billions of hamburgers a year – but for each one I sell, I’m losing money in the process.
Uber/Lyft provide both a better quality of service, at a lower cost than traditional taxis for the most part – the problem is that they can’t afford to offer that level of service at a lower cost than taxis.
More people are going to choose a service that is cheaper, and better, than a service that is more expensive, and worse.
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