Passengers May Pay a Lot More. Drivers Won’t Accept Much Less. - The New York Times

[googlenews]

Passengers May Pay a Lot More. Drivers Won’t Accept Much Less.  The New York Times

Uber and Lyft, the two leading ride-share companies, have lost a great deal of money and don’t project a profit any time soon. Yet they are both trading on public markets with a combined worth of more than $80 billion. Investors presumably expect that these companies will some day find a path to profitability, which leaves us with a fundamental question: Will that extra money come mainly from higher prices paid by consumers or from lower wages paid to drivers? Old-fashioned economics provides an answer: Passengers, not drivers, are likely to be the main source of financial improvement, at l...

View the full article