“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

Because they spend more money than they make. They all run very capital intensive businesses, and need to spend on:

* Paying their drivers
* Paying a large number of software engineers in the most expensive cities in the world (Bay Area, New York)
* Customer acquisition (advertising, promo codes)
* All of the infrastructure to run all their services