Uber's Losses Went From $2.2 Billion to $8.5 Billion in Two Years — That's Why California Went After Driver Pay

Lyft and Uber almost paused operations in California (TBD what will happen) - the dilemma that got us to this situation has to do with profitability.

Uber for ex: grew incredibly fast under Travis K (one of the original co-founders). They expanded operations into the phones of new users, into new markets like scooters and trucking, and into new countries like China.

Growth costs money - Uber lost $2.2 Billion in 2017.

Uber, under Dara's leadership, has been trying to scale "smartly". They sold off weak operations in the Middle East and China, have double downed on Uber Eats amidst COVID, acquired Postmates by Uber, etc.

But Growth still costs money - Uber lost $8.5 Billion in 2019.

And to stop losing money today, Uber would have to largely:

1. increase prices for rides/food delivery OR
2. reduce wages (drivers get less of %)

So:

• Drivers have been protesting
• Drivers eventually sued
• The courts wants Uber (and others) to classify drivers as employees
• Uber refuses bc that's EVEN more unprofitable
• TBD on how Uber can operate in CA, but with added support for drivers