Uber seems so cheap because the company subsidizes fares using a seemingly bottomless pit of venture capital. The economics blog Naked Capitalism suggested that because it lost $2bn, but only made $1.4bn in 2015, users were in effect paying a fare that covers just 41% of the cost of the ride, which helps establish a support base of thrifty fans. The company also appoints local figureheads to build grassroots support. For example, when Uber was struggling with regulators in Calgary, it recruited the philanthropist and Dragon’s Den star W Brett Wilson as its first driver in a “pop-up” service which offered users free rides if they made a $5 donation to a community charity.
Olivia Solon, 'How Uber conquers a city in seven steps', The Guardian















