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Some notes: - They claim their US ride sharing marketshare is 39% - that seems high to me. - $800 mil in marketing spend in 2018 from $500 mil in 2017 - they
by cm2012 8y ago
Some notes:
- They claim their US ride sharing marketshare is 39% - that seems high to me.
- $800 mil in marketing spend in 2018 from $500 mil in 2017 - they say this increase was largely driven by cost of acquiring new drivers. I honestly thought this would be higher as a % of revenue - this topline number also includes spend on promotions/discounts for passengers.
- windyaskew 8y agoFrom this article [1] posted a few days ago, TC says 34% (Uber is at 66%) and that's due to running at a larger loss by offering discounts to riders. Gaining 4% market share is no small feat but doing it by giving discounts isn't exactly a long-term vision. [1]: https://techcrunch.com/2019/02/26/heres-why-youre-getting-all-those-sweet-uber-and-lyft-discounts/ https://techcrunch.com/2019/02/26/heres-why-youre-getting-al...
- panarky 8y agoThis is a network game, so market share is everything. Market share means drivers stay busy and make money. Market share means riders don't have to wait a long time. Uber gave massive discounts for a long time to establish their market share, and it suited their long-term vision just fine. Same strategy seems to be working well for Lyft, too.
- panarky 8y ago> that seems high to me What data do you have that indicates their market share is overstated?
- whymauri 8y agoObviously they have no data, it's a hunch they have. This should be clear from how it's stated.
- panarky 8y agoI value informed opinion much more than random anecdotes. I'm hoping there's more to this comment than just "my friends use Uber so it's hard to believe Lyft has 39% market share".