Lyft looking to get bought out?

Jo3030

Well-Known Member
Moderator
Lyft is reportedly working with M&A firm Qatalyst Partners https://wp.me/p5hvhT-8lFh by @thekenyeung

Lyft could be looking to be acquired as reports have surfaced suggesting that the on-demand car service has enlisted the help of Qatalyst Partners, a firm known for facilitating mergers and acquisitions. The company declined to comment on the report.

Sources told The Wall Street Journal that Frank Quattrone, Qatalyst’s founder and executive chairman, has been in contact with various companies including large auto makers about taking a stake in Lyft. The company has raised more than $2 billion in funding and has been on a seemingly furious pace to take on Uber, which has a massive war chest at its disposal. It has been valued at $5.5 billion so any possible acquisition has left people to concede that Uber has won the ridesharing war.

Should Lyft be acquired and shuttered, this leaves Uber as the standalone service, especially after General Motors picked up what was left of Sidecar after it shut down in December. That company’s CEO Sunil Paul once wrote that Uber’s “win at any cost” model basically put Sidecar out of business and it’s possible that this could result in the same thing for Lyft.

In an effort to counter the growing influence of Uber, Lyft has formed an ridesharing alliance with other companies — kind of like a “the enemy of my enemy” situation. Last September, the company struck an accord with China’s Didi which has recently received backing from Apple, and also with GrabTaxi and Ola.





Some of the Lyft’s investors include a bevy of who’s who in the investment world, including Icahn Enterprises, Rakuten, Andreessen Horowitz, Founders Fund, Mayfield Fund, K9 Ventures, fbFund, and even General Motors which put in $500 million of a $1 billion round into the company.

What may be appealing to large auto makers is technology around self-driving cars that Lyft and may of these ridesharing services are working on. This is why General Motors made its investment according to its president Dan Ammann: “With GM and Lyft working together, we believe we can successfully implement this vision [of creating an integrated network of on-demand autonomous vehicles] more rapidly.”

If we had to think about acquisitions, it’s quite likely that General Motors could be one of the leading contenders to snatch up the company.
 

yucklyftline

Well-Known Member
Lyft just can't compete in the San Francisco market. So many incentives for uber drivers here, it's crazy. 100 for 10 rides on Mondays, 500 extra for 120 rides a week. I drive lyft full time and get nothing, except what I earn in tips, usually 100 or so. Sometimes their hourly guarantees are $20 less per hour than ubers. They are by far the more affordable option for pax, but its absolutely frustrating for a driver. I've since found how to play Lyfts game and do an ok job not getting stuck with a ride I don't want. It was nice working for Lyft but uber is better for the driver, at least in this market.
 

macchiato

Well-Known Member
Lyft just can't compete in the San Francisco market. So many incentives for uber drivers here, it's crazy. 100 for 10 rides on Mondays, 500 extra for 120 rides a week. I drive lyft full time and get nothing, except what I earn in tips, usually 100 or so. Sometimes their hourly guarantees are $20 less per hour than ubers. They are by far the more affordable option for pax, but its absolutely frustrating for a driver. I've since found how to play Lyfts game and do an ok job not getting stuck with a ride I don't want. It was nice working for Lyft but uber is better for the driver, at least in this market.
It's shocking how Lyft went from going toe-to-toe in SF and LA just a few months ago to how they are struggling in those seasoned markets is scary. Uber albeit unpopular by most drivers have actually been able to keep and maintain drivers with so many promotions just goes to show you how massive Uber's warchest is.
 

kevink

Well-Known Member
I like Lyft, but they do need work. Fingers crossed that GM gets them, maybe Mary Barra can help fix them.
 

yucklyftline

Well-Known Member
It's shocking how Lyft went from going toe-to-toe in SF and LA just a few months ago to how they are struggling in those seasoned markets is scary. Uber albeit unpopular by most drivers have actually been able to keep and maintain drivers with so many promotions just goes to show you how massive Uber's warchest is.
Exactly. When I first became a driver the edge was with Lyft because of the tipping feature. Not only is their new driver referral 250 compared to 1000 for uber, fuber has them beat on incentives too
 

backstreets-trans

Well-Known Member
It'll be a sad day for drivers if Uber is the lone rideshare company standing. Now they're paying drivers in the big markets more then they make off the fares with the metal incentives. They can't keep paying more out then they bring in on each fare. If lyft goes down so will all the driver incentives.
 

yucklyftline

Well-Known Member
It'll be a sad day for drivers if Uber is the lone rideshare company standing. Now they're paying drivers in the big markets more then they make off the fares with the metal incentives. They can't keep paying more out then they bring in on each fare. If lyft goes down so will all the driver incentives.
Does uber drop rates to increase rideshare, or to eventually become a steadfast competitor of public transportation? Or, playing devils advocate, to run lyft out of business?

Wasn't lyft the first company that skirted laws and made it possible for non-commercial drivers to transport using their own vehicles? UberX was introduced months later because uberblack was in jeopardy. So, as far as all of us, lyft came before uber. And it's lyft these days who is the cheaper alternative to pax. Maybe Uber set the rates so low, lyft has seen the writing on the wall. Instead of ending up with sidecar, maybe now's a great time to cash in.

Possible uber RAISES their rates? Or keeps them the same. If rates dropped below $1 with no surge and no incentives, they'd lose me as a driver.
 

AllenChicago

Well-Known Member
Lyft just can't compete in the San Francisco market. So many incentives for uber drivers here, it's crazy. 100 for 10 rides on Mondays, 500 extra for 120 rides a week. I drive lyft full time and get nothing, except what I earn in tips, usually 100 or so. Sometimes their hourly guarantees are $20 less per hour than ubers. They are by far the more affordable option for pax, but its absolutely frustrating for a driver. I've since found how to play Lyfts game and do an ok job not getting stuck with a ride I don't want. It was nice working for Lyft but uber is better for the driver, at least in this market.

Funny.. one of my sister-in-laws said this weekend that she's making far more money driving for Lyft in San Francisco than Uber. She totally quit driving for Uber last month. It's fascinating how some drivers can't do well with one company in a given market, while other drivers do great.

Wish I could find the Lyft financials. Is their overhead that much more than Ubers? That's hard to imagine. Perhaps the company is not run as efficiently as Uber.
 

yucklyftline

Well-Known Member
Funny.. one of my sister-in-laws said this weekend that she's making far more money driving for Lyft in San Francisco than Uber. She totally quit driving for Uber last month. It's fascinating how some drivers can't do well with one company in a given market, while other drivers do great.
I drive for lyft full time, I have few complaints compared to uber. I make more driving for lyft also because of pdb and tips. But uber stepped up its game this past week offering an extra thousand for 320 rides in a month. That's an extra 250 per week, ON TOP of everything else. No response from lyft, except this news
 

macchiato

Well-Known Member
One of the problems of Lyft's rating system is that if a pax or driver rates either a 3 or lower, they won't get matched again. While this may be good for the drivers, it screws up the pax request system because now they have effectively taken a driver off the road for this pax. Once they do this enough times (more so for drivers than pax), it creates a faux shortage of cars on the road.

Funny.. one of my sister-in-laws said this weekend that she's making far more money driving for Lyft in San Francisco than Uber. She totally quit driving for Uber last month. It's fascinating how some drivers can't do well with one company in a given market, while other drivers do great.

Wish I could find the Lyft financials. Is their overhead that much more than Ubers? That's hard to imagine. Perhaps the company is not run as efficiently as Uber.
Lyft was bleeding money more because even though some drivers do the PDB every week, they weren't making their commission back as much as Uber was. Now with the metal incentives for Uber drivers, I'm sure Uber is spending tons of money for drivers.

Uber has more investment capital than Lyft to wait this out so it's only a matter of time Lyft caves and gives up by either going under or selling before their brand is worthless.
 

backstreets-trans

Well-Known Member
Funny.. one of my sister-in-laws said this weekend that she's making far more money driving for Lyft in San Francisco than Uber. She totally quit driving for Uber last month. It's fascinating how some drivers can't do well with one company in a given market, while other drivers do great.

Wish I could find the Lyft financials. Is their overhead that much more than Ubers? That's hard to imagine. Perhaps the company is not run as efficiently as Uber.
http://qz.com/718339/lyft-has-hired...nown-for-helping-tech-companies-get-acquired/

This article gives some data on the bottom. NY tracks rides and Uber gives five times the rides as Lyft there. Uber also has more than five time the venture capitalist money invested. Uber's 11.5 billion to Lyft's 2 billion.
 

macchiato

Well-Known Member
The recent redesign now makes perfect sense. When real estate investors try to sell off property, one of the first things they do is a remodel or at the very least a fresh coat of paint.

This redesign is to lure other investors to invest or buy their company.
 

AllenChicago

Well-Known Member
One of the problems of Lyft's rating system is that if a pax or driver rates either a 3 or lower, they won't get matched again. While this may be good for the drivers, it screws up the pax request system because now they have effectively taken a driver off the road for this pax. Once they do this enough times (more so for drivers than pax), it creates a faux shortage of cars on the road.



Lyft was bleeding money more because even though some drivers do the PDB every week, they weren't making their commission back as much as Uber was. Now with the metal incentives for Uber drivers, I'm sure Uber is spending tons of money for drivers.

Uber has more investment capital than Lyft to wait this out so it's only a matter of time Lyft caves and gives up by either going under or selling before their brand is worthless.
Thanks for that detailed response, Macchiato! I didn't know that Lyft was losing so much $$$. These private companies tend to keep profit/loss information secret.

Also, it seems that Lyft spends a lot of money on "Fluff" that generates ZERO revenue. For instance, who drives harder for Lyft because they got a jacket, or a big pink mustache, or 20% discount at Flowers.com? I've got an unopened box right here under my desk that contains the pink mustache.

It appears that Uber has more "meat" to their incentives. I'm amazed by how much money some Uber drivers are making per-hour in Chicago, simply because Uber uses incentives that improve the driver's standard of living, if he/she chooses to pursue them. At least that's the impression I get from reading the Chicago Uber forum.
ac
 

AllenChicago

Well-Known Member
http://qz.com/718339/lyft-has-hired...nown-for-helping-tech-companies-get-acquired/

This article gives some data on the bottom. NY tracks rides and Uber gives five times the rides as Lyft there. Uber also has more than five time the venture capitalist money invested. Uber's 11.5 billion to Lyft's 2 billion.
Seems that Uber is pricing rides low, knowing that Lyft and certainly the baby rideshare companies can't match those rates for very long. They have to cry "Uncle!" eventually. When Uber has squashed them in a given market, the company will begin inching fares up to where they should be.

I remember when AT&T did that to drive my Excel Communications franchise out of business, back in 1999. We couldn't match their ungodly low rate of 7 cents a minute for long distance calls.

P.S. Macchiato, thanks for the "@" tip!
 

macchiato

Well-Known Member
Precisely.

Uber has the money to outlast the smaller outfit. After they have enough drivers, they start lowering rates to squash the competition all the while giving back drivers a "fair" wage through incentives to offset cheap pay. Once competition is gone, they raise rates so they earn money back.

Then a new competitor comes along with a different approach and we start this cheap pay dance all over again.

They could be looking to buyout Lyft, but we'll see.
 

AllenChicago

Well-Known Member
Lyft needs to show the PrimeTime on the request to the driver.

Lyft needs to reverse their decision to hide the destination.

Lyft needs Lux and Plus only modes for drivers.

Pretty simple. Just do it.
If Lyft's financial status is as dire as it seems, they're not giving any thought to improving drivers' working conditions at this point in time. It would be like the captain of the S.S. Titanic worrying about the waiters and cooks, after the ship had struck the iceberg.

But, the +100,000 Lyft drivers are a major asset on the private balance sheet. Lyft will keep the majority of these drivers satisfied, but spending money to make us "happier" is a dead end, if Lyft is hurting and wanting to sell ASAP. (IMO)
 
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