Lyft lost $600 million
According to the new financial information leaked by The Information, the Lyft has lost $ 600 million in their competition with Uber only in 2016. This loss is especially high in the name of a new brand entering the market. But the company has been able to take an important step by increasing its investments for the new period and competing better with Uber in the sector.
Lyft said that there was a loss of $ 360 million in the operations compared to the revenue of $ 200 million. In the reviews made by The Informance for 2014, the brand has a revenue of $ 31.6 million but during the same period, lost $ 199.4 million. The expense in 2016 reached $ 600 million, the highest peak of Lyft’s history.
Uber is a similar situation in the rival. According to recent reports, Uber lost more than 800 million dollars in the third quarter of 2016 alone. Moreover, in 2016, Uber is estimated to have lost $ 2.8 billion. The most important reason for companies to meet high fees and costs in this area is investments in drivers and vehicles. While such high spending and investors are nervous, Lyft’s press releases have been warranted to not exceed $ 600 million per year. As a matter of fact, it was seen that at the end of the year there was a expenditure of 600 million dollars.
Although all these high spendings form question marks for the future of the brand, it is stated that the management of the financial statements is extremely confident and has an optimistic view for the future. It is known that companies are aiming to be profitable in sector by 2017, and after these expenditures, future reports are very much wondered.