“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”

Question

“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”

In: 4

Answer 1

In these cases, they aren’t really plowing too much money back into the company for growth. It’s just that their high costs are higher than the revenue. But in examples like Tesla, they were spending every extra cent they made in R&D and building new factories (over a dozen in ten years), so they had no profit despite getting far more revenue than required just to build cars and otherwise run the company.