By: CBISNSIGHT
Uber is the quintessential two-sided marketplace, but the real mechanics and drivers of its business are poorly understood. We look at where Uber makes money, where it spends it, and what profitability looks like.
As one of the fastest-growing and most controversial startups to ever come out of Silicon Valley, Uber has always upset expectations.
In an industry where keeping your cost of customer acquisition low is key to scaling your growth, Uber has been comfortable spending huge sums acquiring drivers and incentivizing users.
While most software companies stress the importance of retention, Uber has allowed its churn rate to reach nearly 13% monthly.