Lyft is leading the battle with Uber and its valuation is raised to $6 billion
Lyft, the San Francisco-based transportation Network Company operates in 300 cities across the United States of America. The company develops, operates and markets its own software application. This software application allows the customers to request the Lyft ride via the Lyft mobile app. Not only this, the company allows its drivers to earn additional income by delivering food and transporting passengers. As like Uber, Lyft drivers use their own cars and drivers can also rent their cars to drive with Lyft.
Similar to Uber, riders must download the Lyft mobile app to their Android or iOS smartphone. In order to sign up with the Lyft app, the users must enter the valid phone number, a valid form of online payment; either a credit card or the users have to link with the Google Wallet or PayPal account. After signing up, passengers can request a ride from the nearest driver. Once the ride is confirmed, the app will show the name of the nearest driver and his ratings by the previous passengers.
Additionally, the app will also show the photos of both the driver and the car. Both the drivers and the riders can add their personal information to their profiles. They can mention music preferences, hometown, and other such personal details. At the end of the trip, the passenger is given the chance to rate the driver and they can also provide a gratuity to the driver and this will be billed with the passenger’s payment method.
As of January 2016, Lyft is valued $5.5 billion and the ride-sharing company has raised more than $2 billion from its investors like Alibaba, General Motors, Didi Kuaidi and others.
Over the past six months, many Medias have covered the Lyft and Uber than usual. At that time, Uber released its self-driving cars in Pittsburgh. And at that time, the Massachusetts state was imposing the “taxi-tax”. The company decided to shop itself, but it had the problem of finding the potential buyer at the price they fixed.
The company did research on potentially traded companies for the professional investors. And the company was keeping on trying with this.
Uber vs. Lyft battle
At that time, Uber was dominating Lyft. Uber had the larger user base and it provided 10x the number of rides when compared to its rivals like Lyft. It was found that Uber was raising money in the range of $40-60 billion, on the other hand, Lyft is getting one-tenth of that number.
Growth rate of Uber
Over the past two years, the growth rate of Uber is increasing with the company’s purchases have grown about 600% within just the past couple of years. And it was very strong over the past six months.
After a year, it is exciting to see Lyft getting the same or increased growth levels than Uber.
The ride-hailing industry is the fast growing one and in this industry, both competitors Uber and Lyft are equally benefiting. And the industry as a whole is growing quickly. And it was found that Uber has a significant than Lyft. But, what is exciting is that the growth rate of Lyft over the past one year is more than double that of Uber’s growth rate.
The purchase intents of both the companies were measured to track the performance. Over the past year, the growth rate of Lyft is slightly increasing. Earlier, the company had 7.5% of the rides, but now it has 13% of rides that of Uber is producing.
Happiest among both
What is the reason behind the customer shift from Uber to Lyft? Once Uber has a great fame and user base, but now Lyft is taking up the charge. But as per the social media mentions, it was clarified that Lyft rides are happier when compared to Uber.
From the customers, Lyft has been getting 90% positive sentiment throughout the year 2016. And Uber is aiming to accomplish this target. This is the sign to indicate that the customers are utilizing the ride-hailing service frequently.
It is expected that Lyft will cut down Uber’s larger market within few years.
If success was measured only based on volume, then Uber would win without any questions. But volume is not the only factor to measure the social success. When checking the numbers, Lyft keeps engaging its customers to generate the positive sentiment, improve organic growth and to generate an overall community approach to the company’s messaging sector. Lyft shareholders should take advantage of the social data. Lyft is gaining the market value and it is leading its huge dominant competitor in an emerging industry. And the company believes that the customer’s love is yet to come.
This battle between Uber and Lyft has been going for years. Uber has many competitors across the globe and one such huge rival is Lyft. This battle will continue in the future too and there will be no end to this. All this healthy competition is needed in the competitive industry like ride-hailing.
At some point, Uber seems to be winning the battle, on the other point; Lyft seems to be winning this battle. All this is the part of the game. Because, you will see no business hitting only the profit, and no business hitting only the loss. Profit and loss are the part of the business. We can predict the future of the business, but can’t make the final decision regarding the future of the business. Anything may change at any time.
Lyft is seeking new funding
In the United States, Lyft is the second largest ride-hailing company. And the company is trying many new attempts to raise money just like its rival Uber.
The company is having a meeting with its investors about the new fundraising plan and could make the company’s value about $6 billion.
Last year, the company was valued $5.5 billion. General Motors has invested $1 billion into it. It is not clear that how far Lyft will succeed and how successful the round will be completed.
This new fund-raising will act as strength to Lyft, given that Lyft has been caught in the growing series of internal series.
The CEO of Uber was under scrutiny in this year as he participated in the president Donald Trump’s Advisory Council among a social media campaign for all the Uber users who deleted the Uber app from their phone. Eventually, Uber’s CEO stepped down from the council.
Uber has also taken part in the concerns about the company’s workplace culture for the past few weeks. And there were many issues in the company including the women employee’s sexual harassment case.
Moreover, Uber was caught in the accident by one of its autonomous cars. Waymo, the self-driving car business, has moved out of Google’s parent company Alphabet said that Uber has copied the technology from one of its company’s employee.
Mr. Kalanick lost his temper with one of the Uber drivers, and he apologized for his act towards the Uber driver.
Uber was leading Lyft. The main reason for this is Lyft is operated only in the United States, on the other hand, Uber is a global company and the company has its branches in 528 cities worldwide. In the business, anything may change. Now, it is the time for Lyft, to show its power.
Anand Rajendran is CEO and Co-Founder of Zoplay, best PHP scripts development company located in India. Zoplay is a part of Casperon Technologies a leading social and mobile development company. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development. Cabily Script is a clone of Uber, which developed by the tech gigs of his company.