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Comment by enraged_camel | Hacker News Reader

>>Sure Uber is losing gobs of money, but that's not the most important metric at this stage for them. Look at Tesla, they lost 330 million in 2017 Q1.

Apples and oranges. Tesla is losing money because they are investing massive amounts of capital to improve their supply chain and production capabilities. Uber is losing money because they subsidize rides to try to push competitors out of business. Tesla is actually profitable. Uber? We don't know.

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"Uber is losing money because they subsidize rides to try to push competitors out of business."

?? I think thats the wrong way to phrase this. Uber is loosing money as Uber and its competitors are giving a lot of incentives to drivers to win business. All of them are loosing money.

I think the original statement was accurate. And it's not working. Uber will have a rough awakening.

It is interesting that you and him describe essentially the same mechanism with different words. I would personally call it dumping.

In effect, Uber is selling something at a lower cost than it buys, in order to acquire the market.

Note that all companies in the ride-sharing market are doing the same thing, not just Uber. Uber in fact looses less money than Lyft per ride.

Uber doesn't even have competitors in many markets they expanded to. Well, save for traditional taxis.

Yes, taxis and public transportation are Uber's main competitors.

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