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Lyft finally sees a path to profitability: raising prices

By Quartz

Subsidies have always cast a shadow on the ride-hail industryRead full story

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  • Jansen Uy
    Jansen UyAccount Manager at MCC Transport

    Maybe its not just a battle of scale anymore. Finding the supply sweet spot to satisfy demand at a profitable (non-incentivized) level should be the priority.

  • IMHO, Lyft’s advantage was always lower pricing. If they are going to raise prices up to UBER, they are going to have to rely on brand awareness and stronger quality of service to win (in the wake of the release of CURB and other related services). It might work, but I doubt it, as Lyft is not the leader in any of those categories.

  • Sharon Jackson
    Sharon JacksonSystems Analyst

    I’m still going to stand by my decision to just hail a regular taxi with a meter and a standardized fare or a car service where I know the fare in advance. Or just take public transit if I can. Ride shares got big on being cheaper than taxis or car services, but if they raise prices too much, that advantage evaporates. And public transit is greener and often more convenient anyway.

  • Randolph Price
    Randolph PricePresident at Pricepoints

    Or Uber will use it as an excuse to raise prices. They need to something about the 5.8bn loss.

    When I was at Coke the first one blinks the other one would follow on pricing.

  • John Gray
    John GrayFormer Banker Risk Management

    What is interesting are the names Uber and Lyft both seem to suggest being above and neither has yet to generate a profit. In the olden times profitability came before the IPO.

  • Unfortunately having lower prices than Uber doesnt appease shareholders but I doubt this is the way to go as their brand awareness isn't at the level of Uber's.

  • Mathematically a ridesharing company can address cost by 1. Doing its best for optimizing resources; and/or 2. Carefully and tactically charge customers more. So 1 is pretty much saturated now and 2 will silently start. When 2 is done, it would be the time to cut internal resources, which means they no longer need many data scientists and engineers for “optimization” as there is little room for it.

  • Unfortunately this was inevitable, and much too common a trend lately.

  • Larry Larry
    Larry Larry

    On Wednesday, my friend S. arrived in Cape Town South Africa to do a renovation job. Her first trip to the job was in a Uber taxi. The driver must have contacted someone ,because right after, he picked up three Male passengers. The three men then proceeded to punch her and rob her of a New Apple laptop and iPhone which she had just bought for her job. The men then fled, and the taxi dropped her off at her Jobsite and disappeared.

    On hearing of the incident, They stated it was probably coordinated

    On Wednesday, my friend S. arrived in Cape Town South Africa to do a renovation job. Her first trip to the job was in a Uber taxi. The driver must have contacted someone ,because right after, he picked up three Male passengers. The three men then proceeded to punch her and rob her of a New Apple laptop and iPhone which she had just bought for her job. The men then fled, and the taxi dropped her off at her Jobsite and disappeared.

    On hearing of the incident, They stated it was probably coordinated by the taxi driver, and Miss S. was targeted because she was new in the area. My question is, What screening and certification does Uber require of new drivers?

  • Weiyee IN
    Weiyee INChief Strategy Officer

    This is only the first step in the path to profitability, both Uber and Lyft have a long ways to go yet. Ultimately if you are a traditional investor looking for a yield or anything other than pop bubbles in stock price appreciation companies will need to show much more than a single quarter of stemming a bleed.

  • Dustin Blake
    Dustin BlakeRaconteur at Making Government Smarter

    And with Uber seeing deeply troubling $5b losses this *quarter*, I question how much longer they can manage to stick around. Lyft may have actually won their game of chicken with Uber, and if they end up as a ride hailing monopoly, I challenge them to not abuse that position. Even though they are generally considered to be the nicer, friendlier, and less evil company, I worry that their investors will demand otherwise.

    But where before I had tried to split my very limited usage of rides between

    And with Uber seeing deeply troubling $5b losses this *quarter*, I question how much longer they can manage to stick around. Lyft may have actually won their game of chicken with Uber, and if they end up as a ride hailing monopoly, I challenge them to not abuse that position. Even though they are generally considered to be the nicer, friendlier, and less evil company, I worry that their investors will demand otherwise.

    But where before I had tried to split my very limited usage of rides between Lyft and Uber to try to prevent one from getting the upper hand over the other, now I’ll just go for whichever is less expensive, because price is more important to me than lining their investor’s pockets.

  • Calvin Yee
    Calvin YeeEgon Zehnder

    Time to raise prices..

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