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No moat? Of course it has a moat! So far Lyft has raised $1.5 BILLION dollars in order to compete [1]. Capital requirements are absolutely a barrier to entry an
by abrookewood 8y ago
No moat? Of course it has a moat! So far Lyft has raised $1.5 BILLION dollars in order to compete [1]. Capital requirements are absolutely a barrier to entry and protect their position.
[1] http://fortune.com/2017/12/05/lyft-gets-1-5-billion-funding-boost-thanks-to-google/ http://fortune.com/2017/12/05/lyft-gets-1-5-billion-funding-...
- dreamcompiler 8y agoWhy do these ride companies need so much capital? They don't buy cars; the drivers aren't employees. They're a mobile app with a big backend. So why do they need more capital than, say, a game company?
- deleted 8y ago[deleted]
- csin 8y agoYou're not gona like this answer. They need capital because they are making loses year on year. Without the capital, they will be run out of money.
- abrookewood 8y agoMarketing, software development and subsidised rides until market penetration takes off ... there must be more, but I'm not sure.