Uber's wild ride gives Lyft a lift

December 5, 2017

To put it mildly, Uber has had a tumultuous year.

The company’s highs, which include knocking off the ubiquitous yellow taxi as the most used ride service in New York, have been tempered by scandal after scandal, ultimately leading its CEO, Travis Kalanick, to resign over the summer.

Now comes the insult to the company’s financial injuries: Uber’s woes are giving archrival Lyft a lift.

According to documents obtained by The Information, Lyft revenue topped $483 million in the first half of 2017 alone. That’s more than in all of 2016, and while the company is on pace to more than double its year-over-year revenue, its number for the first half of 2017 is actually more than triple that of 2016.

Lyft remains unprofitable despite the dramatic gains, however, and currently loses around $1.20 per ride. Still, in a zero-sum game against Uber, that might qualify as a resounding success. While Lyft has started to stem the losses, Uber posted a deficit of over $2.5 billion in the past two quarters alone, and that number is accelerating despite more than 10 percent revenue growth in the same period.

Speaking about the second-consecutive billion-dollar quarterly loss, Uber’s new CEO, Dara Khosrowshahi said, “The U.S. is very, very competitive right now between us and Lyft, so I don’t see the U.S. as being a particularly profitable market for the next six months.”

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