What makes Lyft better than Uber right now?
I have 0 finance knowledge. Why is it that people say Lyft will be profitable but Uber won't be? Don't they have very similar businesses and issues?
Isnt lyft only in based in the usa?
This isnt bad — good from a risk management perspective
Uber has image problems, sexual harassment in the company etc
Uber = bro culture, no women. Lyft is more diverse
Uber also has Freight, Eats, Elevate (choppers/evtols), and is global. Although the Rides business is profitable ($500M per quarter in terms of Adjusted EBIDTA), the other businesses have yet to be. So, Yelp’s answer above isn’t wrong. More risk, but more reward. Also I’d argue Uber has better talent and a higher standard for hiring.
Isn't Uber much bigger than Lyft?
I guess Uber expands too fast ?
People don’t understand Uber’s business given the wide range of products and multiple areas they operate in. Lyft has one line of business in one country which makes it easy for people to understand. Furthermore, pricing has been rationalizing in the US which should drive profitability up for Lyft. Given Uber’s breadth of investments, all of it won’t turn profitable anytime in the near future. However, the interesting thing to note is that Uber is choosing not to turn a profit and investing in other businesses. So, you might find Uber having more upside if you look at a longer time horizon.
Lyft is a ridesharing company. Uber is not. Uber relies on ridesharing to fulfill its business but it is not one. It’s a logistics company. That’s why it’s spending more money on research and development and will take a lot longer to reach profitability. It’s like Uber is building the Amazon infrastructure so it’ll take a long time for people to understand. Right now it’s at the selling books stage. Also, Remember the days when analysts were asking “what’s amazon doing?”
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