Marketing is very important for all companies; the following information will give you reasons why.
Are you familiar with ridesharing companies? Some of the names that come to mind are most likely Uber and Lyft. Lately, Uber’s competitor, Lyft, has not been performing up to par. Overall, it is not surprising that Lyft has realized that they can’t defeat Uber. Though Lyft has had lots of funding in earlier months, the fact that it needs more funding only a few months later suggests that they are in trouble.
Here are the reasons why Lyft is failing below:
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The stock market for Lyft is still pretty adverse for the time being.
With the staggering global economy and the shock of Brexit, Lyft has not been able to perform well for 2016. Lyft was confident that investors in the stock market would accept their losses as long as the growth was exponential; as of today that confidence has diminished.
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Ridesharing will likely be profitable in the future, but in present day there are losses.
Uber’s CEO, Travis Kalanick, claims that they have been profitable in many cities around the world. However, what does that mean on a global scale and in accounting terms? Even though Uber has plentiful rides when compared to Uber, there are still signs that Uber isn’t making a profit. If Uber’s not there yet then Lyft won’t be there for years to come.
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Lyft vs. Lyft–Lyft has alienated itself from what it stands for.
Lyft prides itself on the fact that it is a “friend giving you a ride” as opposed to Uber which is much more business-oriented. Lyft has alienated itself from its uniqueness by copycatting Uber with the download app-car order strategy. Though Lyft knows what makes them unique, they are avoiding it like the plague.
With automated cars already being created, it is foreshadowing the future of cars without human drivers. If there is indeed a replacement of the human driver behind the wheel with a robot, then Lyft’s supposed vision of a “friend driving you” would be triumphant.