"You pay for this service and rides aren't getting any cheaper" - you can't just say things. You could very well be right but you need to actually look at their margin profile over time to know if this is true.
To give an industry that's a counterexample to the "they add ads and don't make things cheaper", look at groceries. It's a terrible, single-digit percentage margin business but they sell everything from placement in catalogue to whether the product is in a convenient spot on the shelf. That's a clear case where ads make it _cheaper_ for consumers.
Yeah, in competitive markets this would inherently cause some downward pressure on prices.
> look at groceries. It's a terrible, single-digit percentage margin business but they sell everything from placement in catalogue to whether the product is in a convenient spot on the shelf. That's a clear case where ads make it _cheaper_ for consumers.
I don't follow... it certainly improves the grocer's margins, but how does that do anything at all for the consumer?