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>most Uber users will pay whatever the price

So Uber is charging their current rates as a way of giving back to the community or whatever? If Uber (or even Uber and Lyft) were to double their prices tomorrow there would most certainly be a drop in volume. Just a couple of days ago I took a Lyft from the airport for no other reason than that a cab would cost about 2x. Yes, there are also circumstances and places in which Uber/Lyft is demonstrably better than a cab but the decision can also just be about who is cheapest.




Uber is funded by the Kingdom of Saudi Arabia.[1] Softbank's Vision Fund is mostly a front for the Kingdom. That may be more of a political move than a financial one.

Even that wasn't enough money. Uber recently borrowed another $2 billion at 7.5 to 8% for 5-8 years.

[1] https://www.crunchbase.com/organization/uber/funding_rounds/...


They don't have to raise prices. Just cut superfluous headcount by 70%. Instant profitability.




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