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There is still the problem that without the competition that Uber provides, Lyft likely becomes a more typical company and begins increasing their margins in wa
by TheCowboy 10y ago
There is still the problem that without the competition that Uber provides, Lyft likely becomes a more typical company and begins increasing their margins in ways that customers and employees dislike.
- an_account 10y agoUber is still the big dog in town, I doubt they'll disappear completely. Also, if you listen to the Lyft founder talk about the company, he sounds like he actually wants to help the world. Not to say that they can't become a shitty corporation, but it seems less likely.
- dralley 10y agoUber's rates are already unsustainably low. Competition is one thing but unhealthy, unsustainable competition is another thing entirely. It's probably for the best that rates go up a bit.
- 794CD01 10y agoBest for who? It's better for riders if rates stay unsustainably low and they can get discounted rides at the expense of VCs.
- a3n 10y agoBest for people who want these new services to continue.
- 794CD01 10y agoIt doesn't really matter whether they continue as long as something else takes their place afterwards.
- andrewprock 10y ago"better for riders if rates stay unsustainably low" Rates that are unsustainably low cannot be sustained, by definition.
- 794CD01 10y agoNot without outside pressure, which in this case exists. I've been using Uber for 5 years.
- thrill 10y agoExceptionally low rates means the cars that are picking people up are not the quality of cars people want to be riding in, nor the quality of drivers they want to be riding with.
- jimmywanger 10y agoYou're conflating two things - the low rate paid by the riders and the rate paid to the drivers. As long as the drivers are getting paid well, whether it be from fares paid by riders or by VC subsidies, it will attract "quality" cars and drivers. A separate issue is the sustainability of subsidizing driver wages from VCs by keeping rider fares artificially low.
- nomnombunty 10y agoLyft's valuation is still 1/10th of Uber's. I don't think we need to worry too much about Uber going under anytime in the near future. Uber still has another 10B in the bank. As a consumer, I am supporting Lyft so that they might live another day to keep the competition going
- Judgmentality 10y ago> Uber still has another 10B in the bank. Seeing as how leaked financials have reported Uber losing billions each year, I don't think they have nearly that much money left. https://techcrunch.com/2016/12/21/uber-losses-expected-to-hit-3-billion-in-2016-despite-revenue-growth/ https://techcrunch.com/2016/12/21/uber-losses-expected-to-hi...