It wasn’t that long ago when we were baffled by the idea of hailing a ride in a stranger’s car. Back then, for many, the Uber-Lyft rivalry revolved around matters of personal preference: pink or black.
But Uber has since expanded into verticals that now individually dwarf Lyft’s entire business — and in what some view as a winner-take-all market, Lyft’s future looks increasingly like an uphill battle.
Last week…
… Lyft reported earnings that fell below analyst expectations, including a quarterly loss and a lower-than-expected ~$975m revenue outlook for Q1.
- On Friday, Lyft’s stock had its worst day since going public four years ago, with shares falling 36%+.
By comparison, Uber called Q4 its “strongest quarter ever.” It made $4.1B in ride-hailing revenue (+82% YoY), $2.9B from Uber Eats and Postmates (+21% YoY), and $1.5B from Uber Freight (+43% YoY).
Some think Lyft may need to merge with the likes of DoorDash to keep up.
Alternatively, they could establish “an insidious sleeper cell… to sabotage Uber from the inside,” as comedian Nathan Fielder once attempted.
Transportation
