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Uber and Lyft are Ponzi schemes.
There's no way for them to turn a profit at their level of overhead. There's no economy of scale to their network. They're just using money from new investors to absorb losses from operations funded by previous investors.
There's no way for them to turn a profit at their level of overhead. There's no economy of scale to their network. They're just using money from new investors to absorb losses from operations funded by previous investors.
The only reason no one has noticed the rideshares are Ponzi schemes is that unlike most Ponzi schemes, they're actually providing a useful service. But the way they're providing it is completely unsustainable and is eventually going to wipe out investors.
It's no wonder they're frantically testing self-driving cars. Presumably they don't want to own the cars themselves — the whole point of their business model is that they offload the cost of cars, maintenance, insurance and fuel onto the drivers themselves. What I'm guessing...
...they want to do is still have a bunch of independent contractors who own the cars, but just let them drive around autonomously picking up fares while they work at some other job (which would greatly lower opportunity cost, and let them get away with paying even lower wages).
