As Steve Westly writes, Uber and Lyft “are not profitable” and are “hemorrhaging cash.” That’s because their plan from the beginning was to price their service so low it would destroy the competition — and it worked. Imagine a burger chain with unlimited start-up capital selling a Big Mac for 29 cents — it would soon kill off McDonald’s. How about we let the market decide instead? Uber and Lyft must pay their employees as employees, as it should be. The great irony, of course, is that to create a profit, these prices will be closer to what the taxis charge.

Source: Los Angeles Times December 01, 2019 11:03 UTC