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Which employees? FTEs that work in the corporate office and have gone through a 25% and an unspecified "performance" reduction in force? Merging the two compa
by shagie 3y ago
Which employees?
FTEs that work in the corporate office and have gone through a 25% and an unspecified "performance" reduction in force?
Merging the two companies would result in many redundancies that would be eliminated.
Uber has about 32,000 employees(?! https://stockanalysis.com/stocks/uber/employees/ https://stockanalysis.com/stocks/uber/employees/ ). Lyft has about 3000.
I doubt that any M&A of Lyft into Uber would result in Uber being 35,000 employees for long.
For the drivers, many work for both ("But even though Uber is the dominant player among drivers, that doesn’t mean there’s a whole lot of driver loyalty. Nearly 80% of drivers have actually signed up for 2 or more services with Lyft, Postmates, the DoorDash driver sign up bonus, UberEats and Amazon Flex, all siphoning drivers away from Uber." https://therideshareguy.com/uber-driver-survey/ https://therideshareguy.com/uber-driver-survey/ ) and so removing Lyft as an option isn't as impactful to the market. If a given city has the demand for N drivers - it doesn't matter too much if that's split across multiple services or not other than passenger preference.
It probably would impact the cost for passengers since there would be less competition, but that happens in either case of Uber acquiring Lyft or Lyft folding.