Ahead of IPO - Lyft Slashing Prices - Uber to Follow

News Hound

Member
Jan 7, 2019
37
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What City & State do you work in?
The United States of America
The Information is reporting that ahead of its IPO Lyft is lowering prices. They're doing so to grow marketshare so they can show investors how rapidly they're growing. The bad news for us drivers is - it's working! Their marketshare grew to 34% from 30%. So, Uber took notice and realized they're going to have to lower prices too! And Uber has responded by saying that's exactly what they're going to do.

What's amazing is that the rides are so cheap already they're practically free! And yet people want them even cheaper. So, the minute one company lowers prices, people flock to it, and then the other company will lower prices even more and people will flock to it. The company that gets to $0.00 first will surely win the marketshare war!

And they are racing to the bottom. On the downside for Lyft, they lost $668 million in the first 9 months of last year. Uber says they lost $1.8 billion in 2018. That's about in proportion to Lyft considering their relative size.

The true irony in all of this is as these companies become billions of dollars richer in fresh IPO funds, it looks like it's going to do nothing but put downward pressure on driver earnings. AND since they'll be charging less to customers their losses will only grow.
 

gigabYte

Member
Dec 7, 2018
53
8
8
What City & State do you work in?
Long Island, NY
Yep, saw that. Here's a screenshot from Chicago just the other day that a driver captured where he passengers were getting a $6 discount on rides.

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Graham

Member
Feb 4, 2019
141
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What City & State do you work in?
Glendale AZ
I definitely noticed this. One trip to LAX costed me $58. But I took one recently last year that only costed me $23.