If Lyft can enter the market easily, then the market is a commodity market. A commodity market has very few returns. In fact, you can predict that it is a commo

If Lyft can enter the market easily, then the market is a commodity market. A commodity market has very few returns. In fact, you can predict that it is a commodity market because of the existence of taxi monopolies. There is no barrier to entry to the taxi market: just get a car. Since there's no natural barrier to entry, they had to create a regulatory barrier to get profitability. Uber making a profit pre-Lyft is indicative of nothing; they are in a commodity market, so their returns will be low single-digits.