Lyft to claim a third of the US ride-hailing market by the end of the year
According to a private Lyft investor document obtained by Bloomberg, Lyft is expected to have raised its share of the US ride-hailing market by over 61% this year, something that would result in the firm claiming about a third of the total market.
Lyft has been able to gain significant ground on its key rival Uber with the company coming increasingly under fire. Most recently, Uber confirmed that it concealed a hack that affected 57mn customers and drivers during a 2016 data breach, with the company’s former CEO Travis Kalanick having known about it.
Lyft was forecast to “escape the red” next year, according to the report obtained by Bloomberg. However, the company has increased its expenditure in an attempt to capitalise on the current climate, with Uber having substantially lost its grip on the market, meaning that Lyft won’t even break even by the end of next year.
As a result of these extra expenses, Lyft is expected to see net losses of approximately $600mn through 2017, with the company in talks over further investment in order to maintain this increased expenditure and strong growth.