“Why companies like uber, doordash, lyft, etc. make billions in dollars but make no profit?”
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Profit is revenue (money coming in) minus expenses (money going out). If revenue is equal or greater than expenses, then there is no profit.
Uber, Doordash, and Lyft have to pay their drivers, their advertisers, their customer service reps, their managers, their software developers, buy server space, etc. If all that money is greater than the amount of money pouring in, then they don’t have profit.
This isn’t too unusual though. Many start up companies aren’t profitable for the first few years. They need to build up a steady base of customers to offset the initial costs of setting everything up.
Lets say you build a lemonade stand. But the cost of plywood and work of painting the lemonade stand ends up costing more money than you made for the first week of being open. The next week you don’t have to spend money on building the stand anymore. So after you subtract the costs of lemons, sugar, and labor you still have some money left over as profit.
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