Uber Spent More Than $1 Million a Week Subsidizing Uber Pool in San Francisco Alone
According to a report from Buzzfeed News, the ride-hailing spent giant sums to keep the service going in its home market.
Almost two years ago, Uber struggled to keep its service Uber Pool financially stable and competing against competitors like Lyft—which led to the company, on some occasions, dropping more than $1 million each week to keep operations going in San Francisco alone, according to internal documents obtained by Buzzfeed News.
Though Uber's discounted offerings were working in its favor for a while, a point eventually came when the service needed to bring those to an end—which meant raising prices. Which, in turn, apparently turned people off the app; according to Buzzfeed News, 63 percent of riders switched off Uber in an attempt to find lower fares.
The trouble, in part, was with the product. When Uber Pool first opened for use to consumers, it reportedly wasn't very popular; according to BuzzFeed, only 7.9 percent of people who started an UberPool ride wound up matching with another rider on their route.
And Uber employees seemingly didn't think much of it either.
“It was a really shitty product we brought to market,” an unnamed former Uber employee who worked on the Pool project said to BuzzFeed News. But as the discounts and incentives grew, more and more people began to use the app.
You can find the full report from Buzzfeed News here.
- RELATEDUber Spent More Than $1 Million a Week Subsidizing Uber Pool in San Francisco AloneAccording to a report from Buzzfeed News, the ride-hailing spent giant sums to keep the service going in its home market.READ NOW
- RELATEDUber Fires Anthony Levandowski After Not Cooperating in Waymo LawsuitLevandowski pleaded the Fifth in the Waymo court case. That might've cost him his job.READ NOW
- RELATEDSpanish Taxi Drivers Striking Against UberTaxi drivers in three Spanish cities are striking to protest ride-sharing services.READ NOW
- RELATEDLyft Introduces High-End Service to Battle Uber BlackLyft Lux and Lyft Lux SUV are the company's latest attempts to take a bite out of Uber's business.READ NOW
- RELATEDUber Underpaid New York Drivers by Tens of Millions of DollarsThe company shorted New York drivers due to an accounting error, but plans to compensate them.READ NOW