The labor market started to get tight, and that was difficult for uber and lift. Then in 20 twent one and 20 22, interest rat started to rise, and that got difficult for the obers and the lifts of the world. As interest rates finally started to go up, i realized, ok, this is the thing that's going to end the game. And so interest rates changing the behavior of entra capitalists, changed the way that these companies did business. It was no longer ok for them to just burn through tens of millions of dollars just handing it out like candy to millennials trying to get from brooklyn to manhattan. They were like, sorry, those same ubers
Venture capitalists spent years subsidizing the price of things like Uber rides and food delivery. The Atlantic’s Derek Thompson explains why they’ve stopped.
This episode was produced by Miles Bryan, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Paul Mounsey, and hosted by Noel King.
Transcript at vox.com/todayexplained
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