Uber's Speed Could Limit Lyft

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    Uber'' s Speed Could Limit Lyft

    < img src="https://images.wsj.net/im-334681/social" class="ff-og-image-inserted"/ > The great ride-share recovery is no freeway.

    Shares of ride-hailing companies fell Wednesday following Lyft’s first-quarter report and went even lower after hours on Uber’s earnings release that came 24 hours later. Uber said its full ride-share healing in places like Australia and Hong Kong has been balanced out to some degree by continued weak point in locations like India and Brazil, where Covid-19 case counts remain high. On the other hand Lyft, which operates the majority of its company in the U.S., states its ride-share flight recovery peaked in March, at least momentarily, with volumes decreasing month over month in April as demand overtook supply.

    On a revenues call Wednesday, Uber president Dara Khosrowshahi stated the two elements determining driver supply are safety and revenues chances. The company’s focus on the latter, in specific, might have provided it an upper hand versus its U.S. rival just recently.

    Lyft continues to anticipate that it will turn rewarding in the third quarter this year on the basis of adjusted incomes prior to interest, taxes, depreciation and amortization. But that projection assumes a greater volume of rides and more logical pricing to the rider.

    To get there, Lyft has been offering incentives to motorists through greater pay and bonuses in some cases, but it also appears to think its supply issue will naturally sort itself out to some degree. The company mentions less government aid, more vaccines, traditionally exceptional economics relative to food-delivery driving and the desire for meaningful social interactions as several factors that need to bring in gig-economy chauffeurs back to its platform.

    Released at Wed, 05 May 2021 23:43:00 +0000

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