We usually hear people say that one should persevere and overcome a loss. Apparently, this motto is what Uber works on. The company has expanded into new territory, adding new routes in new cities, even after facing a huge loss of 3 Billion in 2016. The problem begins when we start looking at the statistics of this. Until July of this year, Uber did not operate in New York State, other than the city. How can Uber afford to add newer, unprecedented, routes to its system if it’s in this huge a loss? The answer is very simple and in the open. Investors.

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Surprisingly, investors of the company are nowhere near backing out. “Instead it’s a good thing” say a few early investors. This type of attitude among the investors is similar to that of companies like Amazon and Twitter.

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The motive behind this absurd spending of money is, of course, earning more money. The logic is that you weather out the first few years and pour in as much money as the company needs to function efficiently. After the initial buffer, the company starts to make money and eventually, after reaching break-even point, starts to make profit. But this isn’t a short wait.

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Early investors for Amazon had to wait more than two decades and their watch finally ended 2 years ago, in 2015, when Amazon turned its first profit. But that’s not a bad thing, since the first profit Amazon turned was more than a $100 Billion, more than satisfying each investor who were eagerly waiting for this to happen.

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It’s not a cakewalk to profitability for Uber. According to the Huffington Post, Uber lost $645 million in the second quarter. Uber is trying to juggle being profitable and trying to hand out subsidies to its drivers and its riders. It’s a slippery slope. You want to be the cheapest and affordable in the business, you take much longer to get to break - even point. In the current financial market, experts say it’s not a very wise decision. Will rivals like Lyft and Gett take advantage of this situation or will Uber come through? Experts also say that Uber is working in the right direction. “It lost $645 million in the second quarter, 9 percent less than the $708 million loss in the first quarter and 35 percent less than the $991 million loss in the fourth quarter of last year. For all of 2016, Uber lost about $3 billion.”

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So what would life mean without Uber? Uber offers millions of jobs, which, in the current job market, might not be the best if they went away. Uber dominates the e - taxi market since its establishment and it would be very bad on the riders and the economy if Uber stopped existing.

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Let’s hope Uber perceivers and comes out of this, because who doesn’t love to travel in an air - conditioned car for much cheaper than it actually is? I know I do. Here’s hoping!