Leaked: Lyft losing massive amounts of money, looking for buyer

Flarpy

Well-Known Member

SacTownDood

Active Member
Between this and the Uber-Didi buyout, translation: Investors have had enough of Travis' BS and Lyft's copycat BS, no more free money.

The way these numbers read, if rates were where they were at 3 fare cuts ago, both companies would be profitable.
Question is, which one will be forced to raise fares first?
 

uberdriverfornow

Well-Known Member
The reason is simple. In order to compete with Uber, they are forced to lower prices because they do not want to work to help concede that drivers should be employees and be forced to pay a minimum wage. If there was certain stipulations put in place that force Uber and Lyft to have a price floor then they wouldn't have to constantly work to price cut under Uber and with Uber constantly tricking people to invest in their below market equilibrium price ponzi scheme they can't compete with those low prices.

Add to that the fact that Lyft has the most ridiculous logo in the history of mankind, they are continuously alienating guys from taking rides. There is nothing macho about hailing a pink mustache ride from Lyft. They will never get anywhere til they change that logo and brand. Period. End of story. Case closed.

Whoever buys this company is going to be smart enough to rebrand away from that ridiculous logo and brand and will actually have a chance to compete for rides. Furthermore, if they continuously worked to gain drivers, by competing with a smaller commission, then they would be able to gain more drivers and be able to beat Uber.
 

tohunt4me

Well-Known Member
Between this and the Uber-Didi buyout, translation: Investors have had enough of Travis' BS and Lyft's copycat BS, no more free money.

The way these numbers read, if rates were where they were at 3 fare cuts ago, both companies would be profitable.
Question is, which one will be forced to raise fares first?
Which will raise rates first ?

THE ONE THAT SURVIVES !
 

Flarpy

Well-Known Member
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I still don't know why they don't try to make the supply-side (drivers) more plentiful rather than the demand-side (riders). And I don't mean by constantly offering incentives and advertising for drivers, I mean taking the Uber drivers that are already out there.

If Oober is paying $1.00 a mile and Lyft is paying $1.20 a mile, drivers will flock to Lyft. Then Uber will start to surge. Lyft will have the best of both worlds -- more drivers and lower prices. Drivers will cherry-pick surge rides on Uber and pretty soon riders will switch to Lyft because its normal rates are lower than Uber's surge rates AND since there are more Lyft drivers the wait is shorter.

The reason Lyft will be destroyed is that they didn't have the brains to understand this. They thought they could simply pay drivers a penny less than Uber and pax would come flocking to Lyft because their ride is $0.17 less. Not gonna happen. There are lots of dynamics at play.

Whoever is running Lyft stopped his business education at Economics 1. "Oooh lower prices equals higher demand. We need more riders therefore we lower prices a little more than Uber and we win!" (A couple of years later...) "Why is it not working????"
 
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Papa Sarducci

Well-Known Member
And who just got billions from being bought out in China, Uber. Who bought them out, DiDi. Who has 100 Million invested in Lyft, DiDi. Who owns 18% interest in Uber, DiDi. Who sits on DiDi's board now, Kalanick. Who will OWN Lyft by next year, Uber.
 

Wil_Iam_Fuber'd

Well-Known Member
I have zero information about blyft selling itself or their financial results. But here is my question, what am I getting if I bought Lyft? I am a multi-billionaire. I used to own an airline so I already know how to lose hundreds of millions of dollars on bad transportation businesses.

But I can willingly hand you a certified bank check for $500 million to buy your company lock, stock and barrel. Someone jump in the shark tank and pitch me Lyft. You have two minutes, go!
 

Papa Sarducci

Well-Known Member
I have zero information about blyft selling itself or their financial results. But here is my question, what am I getting if I bought Lyft? I am a multi-billionaire. I used to own an airline so I already know how to lose hundreds of millions of dollars on bad transportation businesses.

But I can willingly hand you a certified bank check for $500 million to buy your company lock, stock and barrel. Someone jump in the shark tank and pitch me Lyft. You have two minutes, go!
Exactly, the only people Lyft is valuable to right now are DiDi and Uber which will likely be one company before long.
 

rembrandt

Well-Known Member
Lyft wants to be profitable but at the same time , they really do not want to poach Uber drivers by either offering lower commission or higher rates. They are instead at the same league as Uber in term of treating the drivers. That is a sign of anti competitive behavior. Are they in collusion with Uber ? Possibly.
 

TravisNJ

Well-Known Member
If Oober is paying $1.00 a mile and Lyft is paying $1.20 a mile, drivers will flock to Lyft. Then Uber will start to surge.
Except pax use the cheaper option when there is a discrepancy that large. Pax in Miami wouldn't even switch to Lyft when they were cheaper than Uber for 6 months ($0.90 vs $0.97)
 
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