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Lyft is only alive due to massive injections of VC money. This is a typical dotcom style business that will crumble this year when the stock market tanks and VC

Lyft is only alive due to massive injections of VC money. This is a typical dotcom style business that will crumble this year when the stock market tanks and VC funding disappears. The funny thing is that the entire taxi cab industry in the US was $11B in revenues. So to value Lyft at $5B with Uber having a massive amount of market share is defying simple math. There will be a lot of tears from Lyft. And the drivers don't care because they largely will be on both networks. It will be largely a marketing problem but without their massive amounts of driver and customer incentives people will simply stop using Lyft.

prostoalex 11y ago
> The funny thing is that the entire taxi cab industry in the US was $11B in revenues. So to value Lyft at $5B with Uber having a massive amount of market share is defying simple math. Not disputing valuations specifically, but 1) Company's valuation would be a multiple of expected revenues. If you expect Uber or Lyft to survive for more than one year, then $11B is just the basis for multiple, not the maximum number. 2) There seems to be strong support for "market expansion" argument. People who take a significant number of Uber/Lyft rides have not in the past taken significant number of taxi rides. 3) Uber has expanded internationally (Lyft chose not to), so a global taxi revenue would be a fairer number to start off.
- dikdik 11y ago
  I am more likely to take cabs now than I was before. With Uber and Lyft I often have almost a 50% over cabs 5 years ago. Additionally, it's a hell of a lot simpler, especially when half the cabs I used to take refused credit cards.
  - tedmiston 11y ago
    I'd agree when I'm in NYC or somewhere cabs are readily available at the curb. But it's a rare occasion that I'd actually call a cab. No CC in 2016 is insanely frustrating. I paid for a ~$10 cab ride once with a $100 bill (the only cash I ever carry) after the driver claimed he couldn't accept a CC. Then he gave me ~$30 in change and semi-apologized with "sorry I don't have any more cash yet tonight". I called bullshit and he managed to find another $10 or so. If I hadn't had quite a few drinks, I would have felt more comfortable calling the cops on him at the time, but really it just takes that happening once for me to refuse cash-only cabs. I really had no idea how to respond especially since he told me that at the end of the ride at my apartment, which isn't near an ATM.
    - danieltillett 11y ago
      This is where you tear the $100 bill in half and give him one half. Always ask the driver if they can change a $100 before you get in.
Laaw 11y ago
The stock market isn't why there's so much VC money, it's because VC has better returns than elsewhere, and the stock market tanking only furthers that, doesn't it?

prostoalex 11y ago

> The funny thing is that the entire taxi cab industry in the US was $11B in revenues. So to value Lyft at $5B with Uber having a massive amount of market share is defying simple math. Not disputing valuations specifically, but 1) Company's valuation would be a multiple of expected revenues. If you expect Uber or Lyft to survive for more than one year, then $11B is just the basis for multiple, not the maximum number. 2) There seems to be strong support for "market expansion" argument. People who take a significant number of Uber/Lyft rides have not in the past taken significant number of taxi rides. 3) Uber has expanded internationally (Lyft chose not to), so a global taxi revenue would be a fairer number to start off.

dikdik 11y ago
I am more likely to take cabs now than I was before. With Uber and Lyft I often have almost a 50% over cabs 5 years ago. Additionally, it's a hell of a lot simpler, especially when half the cabs I used to take refused credit cards.
- tedmiston 11y ago
  I'd agree when I'm in NYC or somewhere cabs are readily available at the curb. But it's a rare occasion that I'd actually call a cab. No CC in 2016 is insanely frustrating. I paid for a ~$10 cab ride once with a $100 bill (the only cash I ever carry) after the driver claimed he couldn't accept a CC. Then he gave me ~$30 in change and semi-apologized with "sorry I don't have any more cash yet tonight". I called bullshit and he managed to find another $10 or so. If I hadn't had quite a few drinks, I would have felt more comfortable calling the cops on him at the time, but really it just takes that happening once for me to refuse cash-only cabs. I really had no idea how to respond especially since he told me that at the end of the ride at my apartment, which isn't near an ATM.
  - danieltillett 11y ago
    This is where you tear the $100 bill in half and give him one half. Always ask the driver if they can change a $100 before you get in.

Laaw 11y ago

The stock market isn't why there's so much VC money, it's because VC has better returns than elsewhere, and the stock market tanking only furthers that, doesn't it?