Re:Uber and Lyft’s new road: Fewer drivers, thrifty riders a...
by DeathArrow on Sunday May 29, 2022 @02:24AM
(#31546926)
But if they use the marketing budget to pay drivers or to subsidize rides, aren't they lying about the financial state of the company?
It's a clever way to disguise their unit economics to look better.
Their marketing budget is mostly going to pay drivers.
Put another way - you could be saying - why not pay drivers EVEN less? Well, they're paying them the least they can already. You can be sure of that.
If they did actually paid the drivers more and not disguise it as marketing - then their unit economics wouldn't look good - and when the business as a whole doesn't look good either - that's not a good look.