Can Uber ever make money?

Uber and Lyft in America, Didi in China and other ride-hailing firms elsewhere have used sackloads of venture capital to drive down fares and flood the streets of big cities with cars, clobbering the earnings of licensed rivals. Len Sherman of Columbia Business School draws a parallel between Uber’s business and that of unregulated taxis in New York in the 1930s, when Ford’s Model emerged as a new, low-cost cab. Uber and Lyft are reprising that episode as they fight city by city for drivers and customers.

Source: www.economist.com