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Did not know Lyft had a self-driving car initiative. Was that well known? Did they, like Uber, sink tons of money into it before bailing?

Of course, yes and yes. The business model is complete nonsense otherwise.

The business model isn't nonsense. It justifies a company existing to do what Lyft does, just at a much smaller scale and valuation.

Yes, that’s a good adjustment assuming the need for hundreds (or thousands?) of highly paid engineers isn’t baked into the business model/product.