Uber’s Path of Destruction - American Affairs Journal
Uber’s Path of Destruction - American Affairs Journal:
Since it began operations in 2010, Uber has grown to the point where it now collects over $45 billion in gross passenger revenue, and it has seized a major share of the urban car service market. But the widespread belief that it is a highly innovative and successful company has no basis in economic reality.
An examination of Uber’s economics suggests that it has no hope of ever earning sustainable urban car service profits in competitive markets. Its costs are simply much higher than the market is willing to pay, as its nine years of massive losses indicate.
Enjoy the Uber ride while it lasts because at this rate the service won't be around in the future. Ultimately, the tune will stop playing on this game of musical chairs.