Uber and Lyft are Taking Contradictory Paths to Achieve Wider Profits
Uber Technologies Inc and Lyft Inc, the two top-ranked U.S ride-hailing organizations are into contradictory paths as the latest news reveals that Uber is planning to invest money into a side business that is losing money currently and Lyft, Uber’s rival is focused on moving people.
Based in San Francisco, Uber and Lyft are popularly known as Odd pairs. Over and above, Uber is a large organization with 3.8 billion dollars in revenue which is accounted for the initial nine months for the year 2019 when compared to 956 million dollars for Lyft.
Uber carries out its operations in several markets around the globe, even though it had bumped with regulators in Germany and London; and had tough times in few Asian markets. Meanwhile, Lyft focuses its operations around North America; it had rapidly developed methods to retain high-income riders who gave them repeat business over its operations through a method of single subscription model which was launched last October.
On Thursday, Uber told its investors that 2020 will be the “Year of Subscriptions” while it plans on combining its loyalty programs over food delivery and rides in a single plan. Currently, Uber provides a cross-platform points reward program; in 2018, it introduced a monthly subscription that protects the riders across increasing prices due to weather or traffic, which was available in 40 cities in the U.S.
On the other hand, Lyft had combined public transit data in its app for 7 U.S cities by anticipating that it could turn its app to a single transportation platform. Moreover, Uber had combined its transit data of 8 cities of the U.S and permits its customers of Denver and Las Vegas to buy transit tickets via its app.
Recently, Uber shares went high by 9 percent on Friday when the organization declared that it might achieve wider profitability by the 2020 fourth quarter, which is a year ahead of its target. In no uncertain terms, still Uber expects to lose over 1 billion dollars for 2020.
Further, Uber’s ride-hailing business generates over three-quarters of its income, has profits going up currently. It is its other business of Uber that is dragging the company down. Over the last five years, Uber diverged into food delivery business, developed cars which are self-driving and devised long-term trucking operations and also on commercialized passenger drone shuttles.