Lyft Vs. Uber 2.0
We've done a lot of analysis about the competition between Uber and Lyft. They're the two biggest players in the rideshare industry, so naturally we have to compare them. In an earlier post, Lyft vs. Uber, the comparison showed that Uber had strategic advantages in many areas like funding and market saturation.
Uber certainly still has the upper hand over Lyft. But recent events have shifted momentum towards Lyft.
Uber is in the midst of a massive PR campaign, dubbed 180 days of change. The campaign was a maneuver out of necessity, Uber's public image had been severely tarnished in the preceding months. An accumulation of several missteps by Uber's late CEO, Travis Kalinik, combined with reports of sexism in the work environment helped land Uber in this position.
While Uber drivers have long disapproved of the company, it's always been the passengers that have controlled the rideshare market. With passengers now equally infuriated with the company, Uber's reputation is finally taking a toll on it's bottom line.
So what does this mean for Lyft? Lets take at Lyft's current position in the rideshare market and what they've done to take advantage of new opportunities.
Is Lyft Poised to Win?
Lyft has always been the underdog. They've never had as much funding as Uber and they've had less market share than Uber in almost every market that they compete in.
While Lyft has never been the top dog, it's possible that their second place position has become an advantage in recent months.
Ridesharing is a consumer based industry. If you can't make your customers happy, you can't win. Uber had easily won this battle in the past by having more drivers on the road (shorter wait times for rides), cheaper rides and seemingly more innovations.
All of these things go a long way towards winning over customers. Unfortunately for Uber, the cut throat mentality that gave them so many advantages appears to have backfired on them. That's because it takes a special type of person to execute a business with this type of mentality.
Enter Travis Kalanik.
Travis won on paper for years. But after multiple public instances of bad press, he finally lost. Travis was ousted as CEO, and Uber is still on the rebound from the damages he caused. Consumers turned against Uber, many of them boycotting the platform and choosing to ride with Lyft instead.
So what has Lyft done lately?
For starters, they donated $1 million to A.C.L.U on the same weekend that the #deleteuber campaign hit. Talk about capitalizing on social buy-in.
Uber's market share dropped from 84% to 77% in May of 2017, while Lyft gained 135% in year-over-year booking as of April 2017.
In late August 2017, Lyft announced that it will be offering rides in 32 additional states. A move that is sure to dig further in to Uber's market share.
All the while, Lyft remains a strong competitor in the next big market for rideshare, self-driving vehicles.
Clearly Lyft has made some recent, strong strategic moves to gain a larger foothold in the rideshare market. Nonetheless, we don't expect them to gain any huge chunks of market share in late 2017 or early 2018.