Uber vs Lyft — the ride to profitability
Uber, a company that needs no introduction, is consistently in the news; whether it is their numerous regulatory issues or their ever-expanding war chest of funding. As of today, they have raised over $8.7 B.
However, what is less spoken about or acknowledged is their year on year Profit & Loss (P&L). Interestingly, Lyft, its rival ride-share company, appears to be making more efficient progress on the journey to profitability.
In a recent report, it’s revealed that while Lyft is still losing hundreds of millions each year, its burn rate is slowing considerably. Although they lost $600 m this year, they managed to improve their profit margin by 50%, compared to the previous year.
Uber, in comparison, lost $800 m in the third quarter alone!
While Uber is growing far quicker, it will be interesting to see how the race to profitability plays out.