Sunday, November 12, 2017

Lyft competing for 1/3 of rideshare market

Millennials love ridesharing companies. It is a great way to go out on the weekend or a great replacement to public transportation if you don't have a car. However, between the two major companies of Uber and Lyft, Uber has always been the "king of the hill," in a sense. However, in the last year Uber has hit roadblock after roadblock which might give Lyft an advantage.

What exactly did Uber do wrong? To start, consumers began a boycott of Uber because there was a belief that Uber was undermining a protest involving President Trump's initial travel ban. Shortly after, Uber began having problems with sexual harassment, executive departures and they were even sued by Waymo on grounds that Uber's self-driving car was based on stolen technology. All of this led to CEO Travis Kalanick stepping down.

As a result, Uber has not had the 2017 it was looking to have and Lyft is ready to capitalize on the poor performance especially since rideshare users are only an app away from switching. In order to get consumers to make the switch, Lyft has focused on public perception. It is clear that there is no major differences between the apps so focusing on perception may be enough to begin the switch. In addition, Lyft has also been attracting large new investments that are looking to propel it to Uber's level of success. However, it looks like it is going to take time to fully catch up to Uber's market size, but it is a great start. 

http://fortune.com/2017/11/12/lyft-us-rideshare-market-report/

Posted by at

3 comments:

  1. UnknownNovember 12, 2017 at 11:50 PM

    It will be interesting as to how this plays out. I think it'll be tough for Lyft to ever take over majority service over Uber but I bet they narrow the margin undoubtedly. Time will tell.

    ReplyDelete
  2. Yongzhao LuNovember 12, 2017 at 11:52 PM

    I like to see companies competing with each other. Because I think that consumers will get the most benefits, such as, lower prices, better product and more options. For example, Uber used to compete with DiDi in Chinese market. After Uber's market share in China bought by DiDi, DiDi prices began to increase and their service is a little bit worse than before. Because DiDi becomes the monopoly in the markets. So I hope Lyft will continue compete with Uber.

    ReplyDelete
  3. AnonymousNovember 26, 2017 at 7:47 PM

    This will be interesting to see, Lyft looks like it has been advertising more, especially with their round-up and donate campaign, which allows customers to round up the price of the ride and donate to charity. This is an image booster for company and paints a good picture in the consumers' minds.

    ReplyDelete

Subscribe to: Post Comments (Atom)