Lyft vs Uber. For many, the two may seem indistinguishable, but there are plenty of differences between the US’s two biggest ridehailing companies.
Let’s take a closer look at the differences between Uber and Lyft.
Uber is a global transportation network company that provides its customers with a broad range of services, including its famous ride-hailing and peer-to-peer ridesharing services. The company’s headquarters is in San Francisco. The Electronic Frontier Foundation gave Uber a five star privacy rating. The company is also a gold member of the Linux Foundation.
In 2009, the ride-hailing giant was founded as UberCab by Garrett Camp, the co-founder of StumbleUpon, and Travis Kalanick, the co-founder of a $19 million startup Red Swoosh. A new term ‘Ubernization’ was created upon the major changes Uber caused in the related industry. Many startups have come to describe their products as ‘Uber for X’.
The company says it operates in around 785 metropolitan areas worldwide. Uber is estimated to have 100 million users globally and owns between 65% to 75% of the ride-hailing market share in the US.
Lyft is a San Francisco based on-demand transportation company that primarily provides ride-hailing services. The company was formerly known as Zimride, a long-distance ride-sharing company founded in 2007 by Logan Green and John Zimmer. Later in 2012, it was rebranded to Lyft.
It operates in over 350 US cities. In December 2017, the company expanded into Canada as a competitor to the already established Uber. In total, the service provides over 1 million rides per day. As of June 2018, Lyft was valued at $15.1 billion.
According to research by Second Measure, Lyft was the number two ride-hailing company with a 28 per cent market share in the US, as of late 2018.
The main differences between Uber and Lyft
Before we dig into the Lyft vs Uber opposition, let’s have a look at some similarities they share:
Customer acquisition marketing strategies of both are quite alike;
Both allow a person to hail a ride from apps;
The prices for some of the most basic services tend to be almost the same.
Uber’s mission is more business-centric, while Lyft tends to focus on its customer culture. The latter strives to create a personable and friendly environment, encouraging passengers to ride shotgun to engage with the drivers.
Plans on upcoming IPOs
The Lyft vs Uber feud keeps heating up with their IPOs on the horizon. Lyft announced that the company had officially filed paperwork with the Securities Exchange Commission (SEC) on 6 December 2018.
The company set its approximate per-share-price of $65 in early March and will offer 31 million shares in total. The official announcement of the price is planned on 28 March. Lyft’s initial public offering is already oversubscribed based on commitments made by investors. It is thought that the startup is targeting a valuation of as much as $23 billion.
As a matter of fact, Uber filed paperwork for its IPO on the same day as Lyft. The multinational ride-hailing company was valued at $120 billion by Wall Street banks.
According to data gathered by Bloomberg, and with Uber’s valuation in mind, the company would only have to float about 16% of its shares to make the top five. It is believed Uber has selected the New York Stock Exchange (NYSE) for stock listing. The Uber IPO will be announced shortly after the Lyft IPO in 2019.
Meanwhile, Lyft has chosen Nasdaq Global Select Market on which to float its shares, along with other tech giants like Microsoft Corp., Apple Inc., and Alphabet Inc.’s Google.
The big debate amongst investors right now is whether they should go for Uber or Lyft. While the companies offer the same services, Uber and Lyft ambitions differ. Lyft is willing to dominate domestically, whereas Uber’s vision is a global monopoly.
So, Lyft vs Uber – which one would you choose?