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In a world where Lyft wins the US market, they then have a battle chest for future expansion. Apparently Uber is already profitable in the US and thus can use
by rtpg 9y ago
In a world where Lyft wins the US market, they then have a battle chest for future expansion.
Apparently Uber is already profitable in the US and thus can use that to finance further growth, but nothing is stopping Lyft from going back in that game at a later date. If anything Uber's best strat would probably be to refocus on the US and crush Lyft everywhere, rather than give it the room to breath it needs.
- resf 9y agoLyft can't expand outside the US because there are already local competitors. If I'm happy using Grab, why would I bother installing Lyft?
- throwaway434232 9y agoUber is apparently already profitable in the US. Does anyone know if Lyft is? If it is not, then that would suggest that Lyft is more guilty than Uber of subsidizing rides in order to win market share. 2016 numbers: Lyft Revenue: $700 million Lyft Losses: $600 million Uber Revenue: $6 billion Uber Losses: $2.8 billion The ratio of revenue to losses suggest that Uber is almost twice as efficient as Lyft, and Uber's losses are probably further compounded as it includes many more future investments such as international markets that aren't yet as mature as the US market, and products/services that for which Lyft has no comparable offering like UberRush and UberEats. Lyft also doesn't have any investment in self-driving cars that I'm aware of.