Uber, Lyft’s huge capital have created duopoly in rideshare market - Global News

A fare war between Uber and Lyft has led to billions of dollars in losses for both ride-hailing companies as they fight for passengers and drivers.READ MORE: Uber, Lyft drivers go on strike to protest declining wagesBut in one way it has been good for investors who snatched up the newly public companies’ stock: The losses have scared off the competition, giving the leaders a duopoly in almost every American city.Story continues belowThe two San Francisco companies have already lost a combined $13 billion. And with no clear road to profits ahead, no one else has much of an incentive to mount a challenge using the same model relying on people driving their own cars to pick up passengers that summon them on a smartphone app, said Susan Shaheen, co-director of the Transportation Sustainability Research Center at the University of California, Berkeley.Even if another rival dared enter the market, it would likely be difficult to raise enough money to pose a viable threat after Uber and Lyft spent the past decade pulling in billions of dollars from venture capitalists. And in the past six weeks, they raised an additional $10.4 billion in their recently completed initial public offerings of stock.WATCH: Ride-sharing service Uber opens on the New York Stock Exchange

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May 12, 2019 at 04:27AM