Lyft is a ride-hailing giant that commands 30-40 percent of the United States ride-hailing market
. Interestingly though, its reach stops there.
The company recently acquired Motivate, becoming the largest bike-sharing provider in the United States. Although bike and scooter sharing is gaining traction in the United States, Motivate has not been a major revenue contributor for Lyft
; at least, not yet. Accordingly, no specific breakdown of Motivate’s financial performance was provided, although the company reportedly made $100 million in revenue before its acquisition by Lyft. Indeed, as much steam as bike and scooter sharing schemes may be gathering, they are still part of a nascent industry that is fighting to become profitable
(and often fails, as the downfall of companies like Ofo revealed).
Most importantly, what Lyft is lacking when juxtaposed with its main competitor, Uber, is a diversified portfolio
. Even ignoring the need to embrace the transformational force of autonomous driving, the competition is doing more than Lyft
. Indeed, while Uber is similarly active in the bike and scooter-sharing business (through Jump), it has also branched out to other lucrative businesses. Uber Eats’ booming popularity
is a guarantee that Uber has more ways to grow than mere transportation; Uber Freight and Uber Elevate
allow Uber to leverage its expertise in transportation further in order to remain relevant in the changing transportation landscape.
Finally, Lyft is also lacking geographically
. While it commands nearly 40 percent of the North American market
, it has not yet expanded to other jurisdictions. While focusing on a market that is close to becoming profitable may be considered a wise move, it also creates a dangerous situation for the ride-hailing company
. The American market is almost always the go-to testing ground for companies that want to launch their new ventures. Indeed, if Waymo One is joined by other robotaxi services, one could see a future in which the first movers into the U.S. robotaxi market do to Lyft what Uber did to the taxi industry a few years ago
. The danger of expanding into new geographical markets cannot be understated: Uber faced stiff competition abroad, having been sent packing in huge markets, such as Russia, China, and Germany. Then again, Uber has also reaped benefits
from its international expansion: Argentina is reportedly Uber’s fastest growing market and India has been hailed as a source of “major growth”