Why Lyft Is Losing Money

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  • Published on:  Friday, March 29, 2019
  • Lyft went public on Friday at a valuation above $20 billion, but last year it had a net loss of $911 million. During the roadshow leading up to its IPO, Lyft promised investors it would eventually make 20% EBITDA margins, but it was vague about the timeline and strategy for how it would get there.» Subscribe to CNBC: http://cnb.cx/SubscribeCNBCAbout CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.Connect with CNBC News OnlineGet the latest news: http://www.cnbc.com/Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBCFollow CNBC News on Facebook: http://cnb.cx/LikeCNBCFollow CNBC News on Twitter: http://cnb.cx/FollowCNBCFollow CNBC News on Instagram: http://cnb.cx/InstagramCNBC#CNBC#LyftLyft Is Losing Money
  • Source: https://youtu.be/l6V9_azp1W4
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Comment

  • CNBC

    CNBC

     4 months ago +42

    When do you think Lyft will become profitable?

  • nexus prime

    nexus prime

     4 months ago +1156

    I see drivers have both Uber and Lyft apps.

  • Jorge Arellano

    Jorge Arellano

     4 months ago +704

    Amazon lost money for years because it invested in infrastructure that allowed it to have an edge over other companies. This doesn't look like that at all.

  • YH

    YH

     4 months ago +537

    I always compare the price between the 2 (Uber and Lyft) before picking which service I'll use.

  • SandyMandy

    SandyMandy

     4 months ago +272

    According to CNBC every company is falling.

  • yodaisgod2

    yodaisgod2

     4 months ago +367

    I rather use Lyft because their drivers seem less scummy. Yet, many drive for both. LOL

  • Owolabby Azeez

    Owolabby Azeez

     4 months ago +202

    YouTube was LITERALLY begging me to watch this video so here I go. Ya whoever is scrolling through the comments I hope you have a phenomenal day. Get ya bread and all the crumbs too 😤😤🤟🏾🤟🏾

  • Frank Morales

    Frank Morales

     4 months ago +87

    wait until Amazon gets into the "shipping people" business

  • billy bob

    billy bob

     4 months ago +156

    Only the tech field can a company lose billions and be worth 20 billion+. No profit no problem

  • Retro Fury

    Retro Fury

     4 months ago +365

    2:00 math.exe has stopped working

  • houchi69

    houchi69

     4 months ago +244

    I still choose Lyft over Uber.
    Haven't used Uber for two years now, and don't miss it.
    But this might be their biggest mistake, which is going public.

  • Dark Carousel

    Dark Carousel

     4 months ago +171

    I prefer Lyft in the US.

  • paktofu123

    paktofu123

     4 months ago +168

    Please avoid showing clips of Cramer in the future, you lose credibility.

  • Brian Wong

    Brian Wong

     4 months ago +124

    20% margins eventually when driverless cars are rolled out

  • Altus

    Altus

     4 months ago +73

    If anyone is interested, I'd be cool with sharing my experiences with being a driver for both Uber and Lyft:
    As a college student, I drive for Lyft and Uber. I'll switch between them. I have both apps running and if I get a ride on one app, I turn the other app off, do the ride, and then turn both apps on again. From doing this for about a year and a half now, I have had a better experience with Lyft than Uber. Passengers also tell me they have a better experience with Lyft, from things like driver quality to prices. (funny that people seem to like Lyft drivers more, though most drivers drive for both Lyft and Uber...) I've had some people tell me Uber will tell them one price but they will be charged extra later. With Lyft, it is SIGNIFICANTLY easier for me to find my passenger, and for the passenger to find the driver. Driver's and passenger's locations are shared momentarily with each other through the app, so you can look at the map on your phone and you know exactly what is happening. And, many drivers have the "Lyft Amp" which is the little Lyft logo that lights up on a drivers dash board. With Uber, good luck my dude. As a driver using Uber, I have no idea where you are other than whatever address got sent to the app. This is god-awful if I'm trying to pick people up from apartments or really any large complex that has a single address (like warehouse complexes or massive supermarkets). I will call the passenger or the passenger will call me and we will spend some time playing eye-spy and find-the-uber. I hate this, and unfortunately I've had to cancel rides because I could not find the passenger. I've always found my passenger on Lyft so I have never canceled a Lyft ride for not begin able to find my rider. It is irritating that Uber will probably not fix this since they have not done so in the last few years. And with Uber, there is no standard marking for your car unless your city regulates it, so good luck trying to find your Uber by looking for familiar markings like Lyft's "Lyft Amp". Also, the Lyft app is so much cleaner and easier to use than the Uber app for driver and passenger. For the driver, there are no commonly used items hidden in sub menus and no odd graphical artifacts or glitches. I've had Uber play the "you are online" sound repeatedly every 3 to 5 seconds without touching the "go online" button. It's stupid, but I put up with it. And generally the Uber driver app is much more clunkier than the Lyft driver app.
    As for the economic side of driving, on a very busy night using both Lyft and Uber I will gross somewhere from $25 to $33 an hour in OKC and after fuel and maintenance I do about $22 to $30 on the low side. On a normal weekday I will gross about $18 an hour or net about $15 in OKC and gross about $22 in Dallas. I would make $180 in a day in Dallas and after gas and expected maintenance, that's about $165 from an 8 hour work day. This is better than my previous part time jobs which were from minimum wage ($7.25/hr) to about $10 an hour. The car I use is a 2013 Honda Fit with 110k miles that gets a good 28 to 35 mpg. I do my own oil changes, ATF changes, brakes, all the basic stuff. Big stuff like tires and extensive work, I have done at the shop.
    Only have had a few "bad" passengers. Really nothing terrible. Then again I'm a 6'1" 170 lb male so I may not be an easy target, and also I try to be super nice even if I don't really click with my passenger(s).

  • LostMySauce

    LostMySauce

     4 months ago +155

    These ridesharing services are in their infancy. In 20 years the self driving car may be as normal as having a smart phone is today. Investors are looking at numbers today, but projected numbers in the future

  • Ira Stubbs

    Ira Stubbs

     4 months ago +7

    I drive for 3 companies, and I wouldnt invest in any of them . All it takes is for another company to come on the scene and offer us more money , incentives and better treatment. We are not loyal, they dont recognize us as employees, no benefits , no shares , no room for growth. Not only will we jump ship , but we constantly look and hope for opportunities to.

  • BusinessEtiquettes

    BusinessEtiquettes

     4 months ago +19

    Lyft is using the money taken from the drivers and investors to built driverless cars to fire drivers later.

  • Average Beadle

    Average Beadle

     4 months ago +52

    I’ll never understand people who use Uber over Lyft definitely in high demand areas since Lyft is ALWAYS cheaper usually by $5-$10. It’s bananaland if you use Uber imo.

  • youngsamuel1

    youngsamuel1

     2 days ago

    What a miserable job climate when people have to deliver Amazon packages and use their own car to shuttle people around. Wait till gas goes up. Done for