“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”
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There are a lot of good answers here that give you the literal answer to your question. But I think there is more to your question than that.
Every company you mentioned in your question rely very heavily on creating a network. But they all run into the chicken and egg problem.
If Uber (or DoorDash, Lyft, etc) opened in your town tomorrow, you could sign on but would likely not see very many drivers, so you’d stop using them.
Likewise, if you’re a driver and log on, but see no customers, you’re not going to drive for them either.
All of these companies need to essentially subsidize their drivers and/or customers until the network is strong enough to stand on its own.
There are tons of ways to do this, but typically they offer some type of reward – like get your fifth ride free or an extra $50 for any driver logging into the app for longer than 4 hours.
For what it’s worth, Uber has longed claimed that they were profitable in their large markets. Their losses stem from trying to expand to other cities.
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