Theonik
Member
They are losing money as a way of providing competitive pricing. There are actually 3 spins there:
1) VCs see a return on their investment on their stock values growing. But they need to make finding sustainable in the sense that simple issuing more stock has the opposite effect if the market catches on.
2) They are hoping to decrease their costs with self-driving cars and other schemes where currently their business is to give them a favourable market position and in part subsidises the R&D for that to happen. (VC money is spent both in subsidising rides and in self-driving cars)
3) They hope to be in a position in the market where they can raise their prices eventually as an established player.