> Uber's business only works at scale, therefore they need to get there and deep discounts to get to scale make sense regardless of competitors.
I understand why this might appear to be the case, but that's not what this [0] HN front page article analysis asserts.
The article asserts that 'Uber’s actual financial results, which show no meaningful margin improvement through 2015 while the limited margin improvements achieved in 2016 can be entirely explained by Uber-imposed cutbacks to driver compensation. It is also contradicted by the fact that Uber lacks the major scale and network economies that allowed digitally-based startups to achieve rapid margin improvement'.
I understand why this might appear to be the case, but that's not what this [0] HN front page article analysis asserts.
The article asserts that 'Uber’s actual financial results, which show no meaningful margin improvement through 2015 while the limited margin improvements achieved in 2016 can be entirely explained by Uber-imposed cutbacks to driver compensation. It is also contradicted by the fact that Uber lacks the major scale and network economies that allowed digitally-based startups to achieve rapid margin improvement'.
Interesting read.
[0]http://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver...