Leaked Lyft Document Reveals a Costly Battle With Uber
J Thoendell stashed this in Tech
Leaked Lyft Document Reveals a Costly Battle With UberThe startup also describes its rival as having an “anti-social culture”
Behind the friendly pink mustaches and fist bumps, Lyft is spending furiously to maintain second place in the U.S. ride-sharing industry, and steal market share from the distant leader, Uber Technologies. The expensive battle plan helped Lyft claim a fourfold increase in active passengers on 2.2 million rides in December 2014, but growth is beginning to slow, according to a company presentation to investors that was obtained by Bloomberg. Lyft estimates $130 million in revenue for 2014, according to the document.
The presentation offers a revealing look inside a company that's sweeping U.S. cities, and attracting the attention of venture capitalists and regulators. The presentation, compiled for its $530 million fundraising round announced on March 12, includes recent and projected revenue, ridership figures, marketing costs, and other data about the business. Lyft and Uber aren't publicly traded, and neither company discloses financial information about its operations. Lyft and Uber declined to comment.
In addition to providing a window into its business, Lyft had some choice words for its chief rival. The presentation describes Uber as a "top-down model," with an "exclusive mentality" and "anti-social culture." It says Lyft's growth is led by drivers—32 percent of whom are female—and has a "trusted brand" and "social experience." The companies compete vigorously to woo investors who can fund their operations. Uber's $40 billion valuation dwarfs that of Lyft, which counts Japan's Rakuten, China's Alibaba and the Silicon Valley venture capital firm Andreessen Horowitz among its investors. Bloomberg LP, the parent company of Bloomberg News, is an investor in Andreessen Horowitz.
Lyft's framing of the industry is that they are good and Uber is exclusive and anti-social.
I didn't realize 32% of Lyft drivers are women. That's noteworthy.