Photo: Pkg203
Six years of hard work has paid off for Lyft. The rideshare company commemorated its 1 billionth trip earlier this month. Though rival company Uber took around the same length to reach this milestone, Lyft’s achievement is unique because its services are based here at home in the U.S., as well as Canada.
Lyft co-founder and president John Zimmer expressed pride at the company’s achievement. “We are incredibly motivated knowing that each individual ride can make a difference in people’s lives, and appreciate the community of drivers and passengers who made this possible.”
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Photo: RideGuru
Current challenges
Though ridesharing remains a popular choice of transportation for urban residents, you’ve got to wonder about the industry’s future. Per Amir Efrati, contributor to The Information, revue growth for both Uber and Lyft hit the lowest it’s been in years. One reason for the decline in Lyft revenue might be a recent price increase for passengers.
Despite the recent slump in rideshare services, Lyft should still experience at least moderate demand in urban areas. Not everyone wants to own a vehicle, especially considering that the average monthly auto loan payment has escalated to $523. To many city dwellers, it just doesn’t make sense to pay the costs associated with a personal auto, when alternative transportation is so accessible. As Slate contributor Henry Grabar articulates, 60 percent of Uber or Lyft rides are because people opted for a rideshare rather than choosing public transit, or biking or walking to their destination.
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Full speed ahead
At any rate, Lyft is staying positive and pursuing strategies to help cultivate future growth. It’s preparing to go public, and the company has hired IPO adviser Class V Group LLC to assist management during the transition. This move should raise capital and help secure the rideshare company’s future, no matter what highs and lows the industry experiences in the days ahead.
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News Sources: The Verge, The Information, Slate
