Nostr

Uber's bezzle destroyed local taxis and local transit - and replaced them with *worse* taxis that cost more.

Uber won't say why its margins are improving, but it can't be coming from scale. Before the pandemic, Uber had *far* more rides, and *worse* margins. Uber has *diseconomies* of scale: when you lose money on every ride, adding more rides increases your losses, not your profits.

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Cory Doctorow 2y ago

Meanwhile, #Lyft - Uber's also-ran competitor - saw its margins worsen over the same period. Lyft has always been worse at lying about it finances than Uber, but it is in essentially the exact same business (right down to the drivers and cars - many drivers have both apps on their phones). So Lyft's financials offer a good peek at Uber's true earnings picture.

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Cory Doctorow 2y ago

Lyft is actually slightly better off than Uber overall. It spent less money on expensive props for its long con - #FlyingCars, #robotaxis, scooters, overseas clones - and abandoned them before Uber did. Lyft also fired 24% of its staff at the end of 2022, which should have improved its margins by cutting its costs.

Uber pays its drivers less.

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