Ride-hailing is something which has been helping millions of people across the world. It has helped people to gain a livelihood and others to reach their destinations within time. The ride for the riders has been a hassle free and affordable one. There is no requirement for them to wait for a cab to come by on the streets.
All they need to do is, just open a ride-hailing app on their smart device and within minutes there is a ride available right from the location where we are. Technology is something which has helped the humans to have seamless and effortless experience in whatever they do. There is a completely new level of transportation which is available for the people at present.
Lyft is considered to be the second largest ride-haling service provider in the United States. We can clearly state that this company is a strong contender of all time famous ride-hailing service provider Uber. Uber is available in around 400 different locations in around 90 different countries around the world. On the other hand, we can say that Lyft has its services in around 38 cities around the United States.
The ride-hailing company Lyft is trying to raise funds to provide better services to its customers, this is happening when Uber is undergoing a great downfall with its business. In the recent past, there were a lot of speculations made against the company. The company is trying to recover from all the downfalls which it had to go through and it is evident that the company is struggling to get back to the position.
It is said that there are discussions been made with the investors and shareholders to raise funds for Lyft. This is said to lead to a value of 6 billion dollars for the company, which is significantly huge and it was stated by the officials of the organization. They were asked for more details regarding the funds, but they received a response stating that the sources for the funds are unknown and confidential as well.
Although the valuation for the company was stated to be 6 billion dollars, but another individual stated that it might rise up to 7 billion dollars as well. The organization was valued at 5.5 billion dollars in 2016, where General Motors alone did invest around 1 billion dollars. There is no accurate information in regards to the fundraising whether they will be able to come around with the funds as anticipated.
It is said that, if the company is able to pull off a number of funds, then it would be a great amount of boost to try new things. The company is in talks to raise around 500 million dollars at the least, to begin with, and we can expect that the numbers would definitely go high. Unfortunately, the come happened to lose around 600 million dollars over a profit of 700 million dollars, which is really huge.
Lyft has so far raised 2 billion dollars and the investor’s list contains Andreessen Horowitz, Floodgate and Carl Icahn’s. This is a faint one when compared to the 13 billion dollars with a valuation of 70 billion dollars for Uber. It is clear that, the expansion which Uber has managed to get in over 6 years in big enough to raise funds to this extreme level even though the company is going through a rough patch right from the start of 2017.
We are very well aware of the fact that, Lyft is serving only the United States and no other countries. Hence it is obvious that the funds would be lesser when compared to its rival company Uber. There is a possibility of Lyft trying to acquire IPO and they are still in the talks and the decision has yet to be made. If at all the company couldn’t manage to go over their valuation, then there are possibilities of acquiring the IPO.
Uber, on the other hand, is under a lot of speculations and allegations in the recent past. One of the employees who worked for the company stated that the work culture followed sexism and there was sexual harassment taking place as well. The CEO Travis Kalanick had an altercation with one of the drivers from the company itself. On a later note, post the alleged allegation of the former employee, two of the senior employees quit their jobs at Uber.
Kalanick has been scrutinized for participating in an economic advisory council for President Trump. It was when Trump issued an executive order against the 7 neighboring Muslim countries to enter the United States. There was a protest held by the Taxi drivers in the New York City at the JF Kennedy airport to revoke the ban. That is when Uber went on Twitter and posted a tweet that there will be no surge pricing for the rides at the airport, but the riders had to wait.
On the other hand, Lyft donated 1 million dollars to the American Civil Liberties Union, which is a civil rights group and they are fighting the ban in the court. In fact, the public took to the Twitter social media platform and create “#DeleteUber” after they read the post by Uber for surge pricing. Unfortunately, that Kalanick had to step down from the advisory council.
There was another speculation made as well, where it stated that there was an accident due to one of its self-driving cars. On the flip side, there was a litigation filed against Uber by Waymo, stating that they were applying the technology which has been used in their vehicles. The CEO of Uber stated that he needs to change the way he is leading the company and he might need a COO to support him as well.
On a later note, Kalanick apologized to the driver with whom he had an altercation as he lost his temper and in the speck of the moment he had the argument. It is evident that there has been a plethora of accusations, speculations and alleged allegations against the company right from the beginning of the year. Uber is really struggling hard enough to keep up with its business, against all the odds which the company has been facing.
Uber valued 70 billion dollars and Didi valued 35 billion dollars and it had Lyft left to search for potential investors to raise the funds. Both the top companies in the ride-hailing have hooked up with the pricing wars which are made for the rides for its riders. In last August Lyft had discussions with the big companies about selling itself.
Lyft seemed to have better offers and attractive when compared to Uber, post the accusations which were made against it. After the Delete Uber incident on the Twitter, it was clear that Lyft has hit the top notch and it is said that it hit top spot under the number of downloads for the app on the Apple’s App store. We can see that the number of a user base for Lyft is increasing, as the users of Uber deleted and started using Lyft. It is clear that Lyft is going to reach to completely different level in its business and make it big. It is the beginning of a better tomorrow for Lyft.
About the Author:
Smith Felix is a senior copywriter in Zoplay, a leading digital marketing company located at Chennai. I love to write on a variety of topics including PHP scripts, the mobile app development and SEO. Cabily script is a clone of Uber, which developed by the tech gigs of my company.