So will Uber try to exit Swiss market after this? And if they do how easy it is for the employees to get those wages?
If that's the case, it shouldn't exist in the first place.
Taxi companies cannot compete with Uber not just because of subsidies, but because their apps, experience, UI, all suck. They suck because they are doing by hand manually what Uber et al does with software. Look how universally reviled taxi companies are.
If Uber is losing money it's because they are willfully pouring money into unrelated things not part of the unit economics of fulfilling rides (such as R&D into self-driving cars, upgrades to their tech stack or infrastructure, new feature development, etc). Part of raising money means you have to spend it, and actually booking losses is a great tax minimization strategy as well. Better to give out rider and customer incentives and lose money that way than losing it by giving it to Uncle Sam.
https://www.nytimes.com/2022/05/04/business/uber-earnings-re...
It’s only “approaching” cash flow break even and that’s after diluting existing shareholders by offering stock based compensations. Most profitable companies would institute share buybacks to counteract dilution.
You don’t spend more money than you make to avoid taxes. These aren’t accounting losses.
This doesn’t even take into account that there cost for drivers are going to go up as more legislators start insisting on them giving drivers benefits.
Arguing that Uber is not profitable because it's been 13 years is not a valid argument. They could spend and invest more than they make indefinitely if they wanted to, and it wouldn't affect their unit economics or their potential profitability. Yes, their investment in Uber eats paid off enormously. They were subsidizing Uber Pool rides because there is still an enormous market that supports multiple big ride sharing companies (Lyft, Uber, Didi, Grab, etc) and because they could afford to spend in marketing and subsidization.
Once the heat turns down they may subsidize less, maybe even wind down engineering / product development spend, and they'd have a fundamental product that has better unit economics than a traditional taxi cab company... because again, as I have pointed out repeatedly, their engineering staff is not required to support the operation of their ride service.
Transport and driving is a high competition, low margin business, similar to say the restaurant industry. Putting a smartphone app on top of that economy doesn't change that fact. (the only thing that would turn it into an actual high margin technology business is full self-driving, which is why Uber itself once considered this it's 'only path to profitability').
At least in Germany the taxi apps are so crappy that you still need to call for a taxi most of the time, you then don't have a map where they know where to find you and you know where they are.
Uber has that but no/few drivers in my area. I would use Uber if they had drivers, even if it was the same price as the taxis.