Lyft Cars Will Start Displaying Digital Ads
Lyft recently bought Halo Cars, a U.S. startup that allows drivers to display car-top digital ads on their vehicles, like those seen on yellow cabs in New York City. This means that you might start seeing these ads on more Lyft cars in the near future.
Per Reuters, it’s already been a successful year of growth for Lyft. It reached 22.9 million active riders for its customer base in the fourth quarter. That’s a slight increase from the previous quarter’s statistic of 22.3 million. Considering we’re only two months into 2020, it’s likely that Lyft will experience even more profitability in the months ahead.
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According to Reuters, Lyft is pursuing different sales strategies to boost revenue than rival company Uber. Lyft is pouring more resources into one focus, transporting humans. Uber, on the other hand, is investing in side businesses in an attempt to boost its earnings.
As Zacks Equity Research shared with Nasdaq.com, however, Uber is also experimenting with car-top advertising. To this end, it recently joined forces with startup Cargo, which supplies it with a portion of the profits made from the displayed ads.
Postulating industry growth
It will be interesting to watch the rideshare industry’s growth in the coming days. Some market analysts forecast that the segment will show an annual growth rate of 10.3 percent in 2020. They also predict a 22.4 percent user penetration statistic for this year, which will reach 28.8 percent by 2023.
There are also two other trends that should enhance Lyft and other rideshare companies’ growth. For one thing, more rideshare customers are using the service to get to medical appointments. And more parents are seeking out rideshare services for their children who need transportation during work hours, so they can spend more time at work instead of chauffering their children around.
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Whitney Russell is a current resident of Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not adventuring through the exciting world of car news, she can be found hiking with her husband and their two dogs, motorcycling, visiting nephews and nieces, discovering new memes, thrifting, decorating, crafting, woodburning, researching random things, and escaping into a great movie. See more articles by Whitney.