Well there's an investment and a lawsuit so it sort of balances out.
is the latter a hedge against the former? ;)
These companies generate billions of dollars a year in profit. They, quite literally, have nothing better to do with their money than invest.
Interestingly, this is what will make these companies so entrenched for decades to come - anything that would ever come close to being a competitor..they will be part owners of.
Wouldn't the responsible thing to do be to give back to the shareholders?
Depends. As long as investors feel the company is using the capital better than the investor can the stock price will reward the move.
I'm pretty sure they both operate at a loss or at least come very close to breaking even. There is a 0% chance Uber or Lyft make "billions" in _profit_ every year.
he means Google
Hah wow my reading comprehension is apparently not working at all today, my bad OP. Gunna just leave my comment up so I can be properly shamed :p
It's a complicated relationship.
Yes. Google wns 8% of Uber and Uber recent pricing was a valuation of $70b. So Google investment into Uber much higher. Google want to cover bases I suspect. SDC is all about ride sharing.
Yes, but they don't own it, or have a controlling stake.