Lyft is expected to take over a significant amount of U.S. market, and has gained much on its rival Uber Technologies Inc, according to a private Lyft investor report obtained by Bloomberg.
The investor is depicting in the report that by the end of the year, Lyft’s shares will see a boost in its U.S. ride-hailing business by about 61 percent. The gains that the company got are under the disturbed reputation of Uber after a series of events like executives stepping down and the distress among its drivers.
These series of events has kept Uber distracted for a long time, while it was busy with internal management conflicts, Lyft gained on that and may emerge in the coming months. Besides gaining market share, Lyft has boosted its profitability and sales, the document mentioned.
According to the source Bloomberg, Lyft is also “seeking additional funding and ramping up spending” making it unlikely to reach breakeven even before it is predicted in the document.
The San Francisco based ride hailing company is expected to touch the mark of $500 million by 2019 and a billion by 2020. It also comes to the light that Lyft is exceptionally spending a lot, at a faster rate to take on Uber’s position while it is busy testifying in court and hit while the iron is still hot!
Fidelity Investments, an Uber investor, is in talks to participate in a $1 billion financing round led by Alphabet Inc., another investor in Uber, that values Lyft at $11 billion, according to people familiar with the matter.
While Uber’s US market shares relative to Lyft shows Uber starting the year off at about 80 percent.
Uber’s new CEO Dara Khosrowshahi said at the New York Times DealBook conference Thursday that he believed his competitor was “spending very aggressively to gain share.”
“The U.S. is very competitive right now, between us and Lyft, so I don’t see the U.S. as being a particularly profitable market for the next six months,” Khosrowshahi said.
Like this press release? Submit yours here.