# U.S. Slowdown at Uber and Lyft - The Information



## jocker12 (May 11, 2017)

The once-hot ride-hailing business is cooling down-just as the two biggest players are thinking about going public.

Revenue growth rates for the U.S. ride-hailing businesses of Uber and Lyft *slowed this summer to their lowest point in years*, according to research firm Second Measure, which tracks credit and debit card transactions. *Growth in the number of rides also slowed*, particularly at Lyft, possibly reflecting price increases instituted by the No. 2 ride-hailing firm.

It makes sense that the ride-hailing business would eventually mature after several years of rapid growth. In anticipation of that, both Uber and Lyft are investing in scooters and electric bikes as a way of reaching people who want to go only a short distance or don't want to pay for a car. For investors in both companies, which are expected to go public in 2019, the question is what the growth rate will look like going forward.

The answer to that partly depends on whether the companies can find a way to eat into the broader transportation market. Otherwise their U.S. growth will hit a ceiling and may begin to mirror that of the overall economy. That means increases of a few percentage points a year.

The chart above shows the trajectory for U.S. revenue growth in ride-hailing for both firms over the past two and a half years. Uber increased U.S. revenue from ride-hailing by about 12.5% in July from a year earlier, the data show. That was down from an annual growth rate of 33.3% in July 2017 and 63.5% in July 2016.

Meanwhile, Lyft's business grew at an annual rate of 46.6% in July, down from 127.7% in July 2017 and 204% in July 2016. These growth rates may fluctuate up or down in the coming quarters, but the overall trend seems clear. Spokespeople for the two companies did not have a comment. However, a person close to Lyft said Second Measure's data understates the company's recent growth rate. Second Measure says it tracks about 3% of all credit and debit card transactions.

The slowdown may be more worrisome for Lyft, which is several times smaller than Uber in the U.S. Lyft's market share in terms of sales rose to 28% in July versus 23% a year ago, with Uber grabbing the rest of that share, according to Second Measure data.

Lyft was hoping to transcend the slowing growth in the market overall by gaining share against Uber and eventually surpassing it. But Lyft's gains appear to be slowing down, based on the Second Measure data and prior private comments from executives at both companies. Lyft's share has only ticked up by one percentage point during the first seven months of 2018, the data show. That said, Lyft calculates its market share at 35%, in terms of the number of rides, and such a figure is supported by some third-party data.

Other third-party data also imply Lyft's ride-hailing growth relative to Uber will flatline. Data from App Annie, a mobile app tracking firm, show that in terms of app downloads per month, Lyft has had a 40% market share versus Uber's 60% for the past year or so. And App Annie data show the companies currently retain customers at a similar clip. Unless Lyft improves its ability to sign up more customers than Uber, or improve how well it turns new customers into consistent ones, also known as retention, it won't make much headway.

Without closing the market share gap, Lyft won't be able to generate as much in profit. It won't have as much scale as Uber to cover costs such as marketing, research and development of new technologies like self-driving cars, which are many years away from meaningfully impacting the business.

Lyft also doesn't have as many additional possible avenues of growth as Uber-namely, food delivery and a truck freight marketplace-to appeal to institutional investors in the public markets.

More importantly, Uber operates, and dominates, markets in other parts of the world, including the U.K. and Latin America, and the company's executives haven't been expecting short term profits to come from the U.S., according to one person with knowledge of Uber performance. (See the global ride-hailing map here.) Lyft operates almost exclusively in the U.S.

Uber CEO Dara Khosrowshahi has talked up food delivery, freight, and small electric vehicles like bikes and scooters as the next big growth engines for his company. In a decade, he predicted those business would be bigger in terms of transactions than the Uber car-based rides business. In terms of growth, "we've got three [non-core] businesses that kind of look like UberX [Uber's core business]," Mr. Khosrowshahi said at TechCrunch Disrupt last week.

The slowing growth could mean investors will pay more attention to the two companies' losses than their revenue. Lyft generated $1 billion in net revenue in 2017, though it almost certainly lost more than $500 million overall, based on results in the first half.

That compared to Uber's $7.5 billion in net revenue in 2017 and a net loss of $4.5 billion. Uber doesn't break out its U.S. numbers, but the company is believed to generate most of its revenue there, so the overall slowdown will have an impact.

https://www.theinformation.com/articles/u-s-slowdown-at-uber-and-lyft


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## tohunt4me (Nov 23, 2015)

But
Uber SKATEBOARD IS EXPANDING !


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## jocker12 (May 11, 2017)

tohunt4me said:


> But
> Uber SKATEBOARD IS EXPANDING !


The "Potential" is shrinking as we speak. The investors are constipated. Soon they will invest in sharing their underwear.

We need to give them mirrors to see how their shared stupidity looks like.


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## tohunt4me (Nov 23, 2015)

jocker12 said:


> The "Potential" is shrinking as we speak. The investors are constipated. Soon they will invest in sharing their underwear.
> 
> We need to give them mirrors to see how their shared stupidity looks like.


Vampires cant see themselves in mirrors.

Blood Sucking Parasites on Humanity !


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## KevinH (Jul 13, 2014)

Another hail Mary pass gone wrong?


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## tohunt4me (Nov 23, 2015)

KevinH said:


> Another hail Mary pass gone wrong?
> View attachment 259127


Exactly Back where it started.

New Fad !
" FLYING KITTENS WITH UBER ICE CREAM "!

We pay You to deliver !

We pay to show Market Share

Ponzi . ..
Ooops
" TECHNOLOGY COMPANY "!

Coming Soon

" UBER SNOW PLOW "!


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## Stevie The magic Unicorn (Apr 3, 2018)

tohunt4me said:


> Coming Soon
> 
> " UBER SNOW PLOW "!


"Why is uber Snow plow available nation wide?"

"Because people want an affordable snow plow service all across the US"

"But why places like Miami?"

"Shut up, quit stiffing our innovation"

Uhh... hand me back those safety scissors... i'm suddenly not trusting you...

2 weeks later...

Work for uber Snow-plow in Orlando, make up to $40 per hour!


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## tohunt4me (Nov 23, 2015)

Stevie The magic Unicorn said:


> "Why is uber Snow plow available nation wide?"
> 
> "Because people want an affordable snow plow service all across the US"
> 
> ...


Somewhere
A Snow plow is getting Sand off the sidewalk . . .


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## FormerTaxiDriver♧ (Apr 5, 2018)

The overall business gets slow during late summer as I experienced this driving a taxi. This slow down trend predates Uber and Lyft.


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## jocker12 (May 11, 2017)

FormerTaxiDriver♧ said:


> The overall business gets slow during late summer as I experienced this driving a taxi. This slow down trend predates Uber and Lyft.


That graph shows 2 years of decline. Their pitch they kept hypnotizing investors with was "growth potential" which is slowly but steadily vanishing.

Anybody wondering why both companies want to go public and sale shares to the general public?


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## heynow321 (Sep 3, 2015)

no wonder gryft has completely turned off prime time. they must be shaking in their little pink shoes.


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## HotUberMess (Feb 25, 2018)

jocker12 said:


> That graph shows 2 years of decline. Their pitch they kept hypnotizing investors with was "growth potential" which is slowly but steadily vanishing.
> 
> Anybody wondering why both companies want to go public and sale shares to the general public?


I said it yesterday: it's easier to lie to small investors


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## goneubering (Aug 17, 2017)

jocker12 said:


> View attachment 259119
> 
> 
> The once-hot ride-hailing business is cooling down-just as the two biggest players are thinking about going public.
> ...


I don't see Lyft ever catching up to and surpassing Uber.


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## jocker12 (May 11, 2017)

HotUberMess said:


> I said it yesterday: it's easier to lie to small investors


At this point, most of the media is being used to intoxicate the public, because the public simply believes what is being told.

If and after the initial investors will recover their initial investment with a nice profit ($17 billion initial investment at a $110 billion estimated value for Uber is 6.4 times their money), they will wash their hands, and when the "new" company will face the real market realities (company not being able to use free cash anymore to subsidize insane ideas or stupid projects) no original investor will be to be blamed because the present lie is that both companies are doing great, pursuing new and challenging ways to grow, in many transportation related fields, with an enormous technological "potential" regarding advanced technologies like flying or self driving vehicles.

Actually what they are doing is adding more useless junk on cities streets.



goneubering said:


> I don't see Lyft ever catching up to and surpassing Uber.


Lyft is like the little brother doing whatever the big brother does, when the performance and possibility of success in any field will come from doing exactly the opposite of what your competitor does.

But these are pathetic millennial nerds thinking they've already conquered the world, made few bucks and disrupted the pathetic reptile that the cab industry used to be.


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## hanging in there (Oct 1, 2014)

tohunt4me said:


> Somewhere
> A Snow plow is getting Sand off the sidewalk . . .


Uber Lunar Rover: complimentary water, mints and green cheese wedges. Perk for drivers: less gravity= higher MPG or more miles per charge.


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## GT500KR (Jan 30, 2017)

hanging in there said:


> Uber Lunar Rover: complimentary water, mints and green cheese wedges. Perk for drivers: less gravity= higher MPG or more miles per charge.


Mommy mommy the driver is shutting off my oxygen!!


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## UberLaLa (Sep 6, 2015)

Best news I've heard this week!


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## Lee239 (Mar 24, 2017)

Uber is going to want to start monetizing walking too.



FormerTaxiDriver♧ said:


> The overall business gets slow during late summer as I experienced this driving a taxi. This slow down trend predates Uber and Lyft.


No what they are saying is that this summer it has slowed down more than previous years summers meaning it seems to have reached it's grown peak.


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## LoveBC (May 16, 2017)

jocker12 said:


> *Growth in the number of rides also slowed*, particularly at Lyft, possibly reflecting price increases instituted by the No. 2 ride-hailing firm.


Really?? Did anyone get a piece of these increases?


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## Rickshaw (Jun 30, 2017)

Paxs who cannot use bikes/scooters:
-those going long distance,
-with luggages,
-with disabilities,
-more than 1 pax,
-seniors and minors,
-those who do not want to,

Bikes and scooters may supplement X in downtown but will not be bigger than car-sharing.


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## Stevie The magic Unicorn (Apr 3, 2018)

Rickshaw said:


> Paxs who cannot use bikes/scooters:
> -those going long distance,
> -with luggages,
> -with disabilities,
> ...


Rain,
Snow
Groceries
Drunks (a large bulk of the for-hire business)


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## Cheeetah (Jul 15, 2018)

This overall list really looks awesome! I'm sooo happy to be at the forefront of a new industry disruptor! I can't think of anything more noble than transporting seniors (including disabled, demented and those in distress), minors (like high school kids going to and from house party raves on their Mom's account), families doing the sightseeing gig on a weekend by booking a trip 4 hours out of my home region, and, of course, the family coming out of Walmart with 4 shopping carts of crap that they need transported 1.7 miles from pickup in rush hour traffic. This is indeed the brave new world!!

Let's not forget to add "long ride home for the prostitute" to this list. At least the John knows to properly tip the driver to keep the license plate number of the car in front of the motel room out of the news... 

While I know the world will begin to align with this new reality, so far all I get from the seniors is a Werthers, an occasional Abercrombie fleece or pill dropped on the carpet from the kids, and a rash from the prostitutes. But I am optimistic.


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## Uber rep irl (Sep 15, 2018)

Ah, so finally the whole "private client" gaming by the drivers kicked in.


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## Stevie The magic Unicorn (Apr 3, 2018)

Cheeetah said:


> This overall list really looks awesome! I'm sooo happy to be at the forefront of a new industry disruptor! I can't think of anything more noble than transporting seniors (including disabled, demented and those in distress), minors (like high school kids going to and from house party raves on their Mom's account), families doing the sightseeing gig on a weekend by booking a trip 4 hours out of my home region, and, of course, the family coming out of Walmart with 4 shopping carts of crap that they need transported 1.7 miles from pickup in rush hour traffic. This is indeed the brave new world!!
> 
> Let's not forget to add "long ride home for the prostitute" to this list. At least the John knows to properly tip the driver to keep the license plate number of the car in front of the motel room out of the news...
> 
> While I know the world will begin to align with this new reality, so far all I get from the seniors is a Werthers, an occasional Abercrombie fleece or pill dropped on the carpet from the kids, and a rash from the prostitutes. But I am optimistic.


Yup... you've reached level 4. By level 10 you learn that night drivers really work at night to avoid grocery trips...


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## hanging in there (Oct 1, 2014)

Stevie The magic Unicorn said:


> Yup... you've reached level 4. By level 10 you learn that night drivers really work at night to avoid grocery trips...


Well you still get them around here sometimes from the 24 hr Super Walmarts ( the ones with a full supermarket) and the 24 hr FoodForLess. Plus the 24 hr Ralphs in Hollywood.


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## Stevie The magic Unicorn (Apr 3, 2018)

hanging in there said:


> Well you still get them around here sometimes from the 24 hr Super Walmarts ( the ones with a full supermarket) and the 24 hr FoodForLess. Plus the 24 hr Ralphs in Hollywood.


But I hope that there's a lot less of those trips late night and early morning?


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## hanging in there (Oct 1, 2014)

Stevie The magic Unicorn said:


> But I hope that there's a lot less of those trips late night and early morning?


Yes that's true. But when you get them they are usually a double dose of " yuck". The combination of a grocery run and "night creatures".


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## nouberipo (Jul 24, 2018)

HotUberMess said:


> I said it yesterday: it's easier to lie to small investors


Yes it is easier to lie to main street investors so I find it my duty as a part-time Uber driver to convince every ride of the "House of Cards" this company is built on. I explain the unethical business model, their well document treatment of women, their well documented treatment of drivers, etc.. YOU as a driver have those main street investors in the back of your car every time you drive and it is up to us drivers to make sure to educate them on the potential for an IPO and why they would be investing in one of the most unethical companies that has existed.


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## HotUberMess (Feb 25, 2018)

The bike and scooter thing is such a phenomenally bad idea, I can't fathom the level of groupthink inside Uber to come up with this garbage

Same for me nouberipo, I tell them all. Most of my pax are upper middle class, exactly the kind of people who wouldnbe buying that stock thinking it's a good deal


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## pacman38 (Jun 20, 2017)

Stevie The magic Unicorn said:


> "Why is uber Snow plow available nation wide?"
> 
> "Because people want an affordable snow plow service all across the US"
> 
> ...


There are snowbirds in Miami LOL


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