How Uber Makes Money

They, uh.... don't make money.

From the article:

>Uber’s losses today are the stuff of startup legend.

>In Q3’18, the company reported another quarter in the red. Revenues rose nearly 40% year-over-year to $2.95B, but the company still lost more than $1B on a GAAP basis.

(I've managed to hardly read anything about Uber before on here, so excuse the naïvety)

So it's virtually a pyramid scheme?! Sounds like the main benefit for drivers (apart from low wages) is a large bonus for referring other new drivers. Uber spends most money getting more drivers, and ever expanding. The early drivers got paid well (from bonuses), and so do those running the company, I assume. So when the global supply of new drivers runs out,..what?

Does anyone understand what goes into Ubers sales and marketing expense? It appears they are spending roughly 500mm a quarter on this line item which is enough to eat up most of their entire gross profit. Are their high Sales and marketing costs a function of their high driver churn?