Until they turn profits, ride-hailing firms will be vulnerable to a loss of investors’ patience
went to press, will be one of the largest in tech history. The hoopla cannot drown out uncertainty about the firm’s future. Ride-hailing platforms have grown hugely in recent years, changing the face of urban transport. They have also been virtuosic losers of money . Lyft made an operating loss of nearly $1bn in 2018; Uber, about $3bn.
. But drivers of private vehicles also receive plenty of implicit support. Drivers impose environmental hazards on others at no financial cost to themselves, from the health effects of local air pollution to the climate change resulting from carbon emissions. And then there is congestion. The right to use scarce road space is valuable. When it is given away, drivers overuse available roads, and clog them. The waste is colossal.
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