alt Hacker Newsthe exact same arguments were said about uber's business at the start.
Yet, it is now profitable.
The bet is that people realize how valuable these services are, and despite complaining, they still would pay the higher price. This realization would not happen without this initial subsidy from investors.
It isn't too different from drug dealer's first sample free...
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Last I checked, Uber underperformed the S&P index since its IPO. Even Softbank didn't make a great return on its investment. The growth story was definitely oversold.
Also, Uber was peak ZIRP + COVID, money was cheap and growth was easy. I think the mountain to climb is a lot steeper now.
There’s also examples where this didn’t work. Moviepass for example.
Taxis were an established profitable business model and the uber subsidisation wasn’t anywhere near as much as AI subsidies.
Uber business model wasn't a subscription "for 10 bucks you can travel 900 lightyears a week"