July 22, 2017

Uber vs. Lyft: A race that isn’t anywhere near being over

UBER CEO Travis Kalanick
By Heisenberg Media [CC BY 2.0], via Wikimedia Commons

“I’ve beaten them.”

Those were the words Uber co-founder and CEO Travis Kalanick used to describe rideshare competitor Lyft — one of the most highly valued start-ups in the world — in a video that went viral earlier this year. But few have focused on that claim. It’s worth reviewing, especially for investors. Uber is worth almost nine times as much as Lyft’s $7.5 billion valuation, but it’s far from ending the competition.

This year so far has not been kind to Uber. In the span of a few months, it has endured allegations of sexual harassment, a major legal challenge to its autonomous driving technology, revelations that Apple CEO Tim Cook threatened to kick Uber out of the Apple app ecosystem because of Uber programming designed to fool Apple’s own engineers, and most recently a Department of Justice criminal investigation into its practice of “greyballing,” or using software to elude government officials trying to stop the service in cities where it had not yet been approved.

An angry Kalanick caught on video yelling at an Uber driver, contended, “We have to [drop prices]. … We have competitors; otherwise we’d go out of business.”

Kalanick is correct in this — its competitors, primarily […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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