Lyft’s entire business model is predicated on its relationship with its drivers. Unfortunately for Lyft there is great uncertainty at each juncture of that driver relationship, JmBooyah writes.
With Lyft and its larger competitor Uber vying for market share, competition over prices will remain fierce, Engle said. “Add the lack of pricing power to Lyft's nearly $1-billion net loss in 2018, and I don't see a profit inflection point on the cards near-term,” he said. “As for the independent contractor model, any tightening of the legal or regulatory framework could put the entire business model in jeopardy — and that affects Uber, too.
“Adverse changes in laws or regulations at all levels of government or bans on or material limitations to our offerings could adversely affect our business, financial condition and results of operations,” it continues. That’s likely part of the reason the company is offering shares of its stock to drivers who have completed a hard-to-reach number of 10,000 rides.“Our continued growth depends in part on our ability to cost-effectively attract and retain qualified drivers who satisfy our screening criteria and procedures and to increase utilization of our platform by existing drivers,” the company’s filing reads.
In the long term, however, the bet many ride-hail and transportation companies have made is that they won’t need to rely on drivers as heavily.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Lyft maps route to place where all is relativeWhat’s the ride-hailing app worth on the stock market: Is it $15 billion, its private value mid-last year, or $25 billion? And will larger Uber top $100 billion? All the players are still private, so there’s nothing to compare. They’d better hope Lyft does a good marketing job.
और पढो »
Gap, Lyft, Barbie and Bud: Here's what brands are doing for International Women's DayInternational Women's Day is a chance for firms to highlight the gender equality work they're doing. This year many are pushing staff initiatives and charitable work as well as launching advertising campaigns.
और पढो »
Analysis | The Technology 202: As Lyft prepares to go public, legal and political challenges loomAnalysis: As Lyft prepares to go public, legal and political challenges loom
और पढो »
Lyft IPO has fewer Wall Street seats than it seemsThe ride-hailing firm has booked a staggering 29 banks for its trip to the public market. But only three, led by JPMorgan, will earn a decent fare. That’s an unusually small group. If Uber sticks with recent practice, there will be more wannabe drivers clamoring for their share.
और पढो »
Breakingviews TV: Lyft the veilLyft is hitting the trail for its initial public offering just ahead of larger ride-hailing rival Uber. Rob Cyran discusses how investors might react to the money-losing company’s effort to achieve a valuation up to $25 billion – with Uber and other...
और पढो »
Lyft and Uber could leave other IPOs idlingThe two ride-hailing firms could between them raise twice as much as the $7.1 bln tech debutants managed on U.S. exchanges last year. With Airbnb, Pinterest and others hoping to take similar trips to the public markets, Wall Street needs to get a lot more demand on the roads.
और पढो »
What the Lyft IPO reveals about the rapidly changing driving habits of AmericansWill ride-sharing be a cheap and attractive alternative to car ownership when these organizations have to turn a profit?
और पढो »
Lyft-off or crash-land?As it prepares to go public, Lyft reveals booming revenue, monster losses and a big bet on the future of transportation
और पढो »