Search
  • Obi News Team

Lyft's trillion dollar market opportunity and Uber's UK troubles get worse...

Updated: Sep 30


Photo by Dan Gold on Unsplash

In this week's newsletter - John Zimmer talks about Lyft's trillion dollar opportunity, Uber is getting close to profitability (at least via a certain accounting method), Britain is facing tough times with fuel shortages, strikes and increased ride prices and Obi launches a post pandemic rideshare survey. John Zimmer Shares Lyft’s Vision For The Company’s Future And $1 Trillion Market Opportunity Forbes has a profile on John Zimmer, co-founder of Lyft. Last month the company achieved a major milestone: profitability of $23.8 million for the second quarter as compared to a $44 million adjusted loss expected by analysts polled by FactSet. This despite the pandemic tanking the rideshare company’s market by 70% at the onset of the crisis. Now, he and CEO Logan Green are focused on their long-term vision: transforming Lyft into a “transportation network,” something they say presents a $1 trillion market opportunity. Read on Brits using Uber and other taxi apps face long wait times and fare hikes amid a driver shortage Multiple customers told CNBC that the apps failed to connect them to a driver in recent weeks, resulting in them being late for meetings or stranded at the end of a night out. Others said they’ve encountered extortionate costs as a result of “surge pricing.” There just aren’t enough drivers to accept all the journeys being requested. And it’s sent prices rising. Read on. More bad news for Uber UK Uber Technologies Inc. has already seen its U.K. drivers departing to other ride-hailing and delivery apps, leading to longer waiting times. Now drivers are also spending time searching for fuel, hindering their ability to meet demand for rides. The ADCU is also planning a strike on Tuesday that will involve “thousands” of drivers in London, Birmingham, Nottingham, Glasgow, Manchester, Bristol, Sheffield and Leeds. Read on. My life as a Tesla Uber Driver The Driven has a piece highlighting the costs of being an electric Uber driver. For example, charing per month was just $72 vs over $900 for a gas driven car. Read on. The Reforming Dara The FT has a profile on Mr Uber himself (Dara). Khosrowshahi’s efforts to rehabilitate Uber’s reputation could be unravelled, as it goes toe-to-toe with drivers seeking employment status and local authorities trying to protect restaurants. A number of major markets, including San Francisco and New York City, have moved to limit the commissions that can be levied on sales of the delivery sector. On top of that, there is continued opposition against the employment model of its core ride-sharing business. Read on. Uber to pay pensions to all its UK drivers, backdated to 2017 Good news for UK Uber drivers (apart from the fuel shortage and upcoming strike, that is). Uber is to pay out millions of pounds in missed pension payments to UK drivers dating back as far as 2017 under a deal with the retirement savings watchdog. The ride hailing company was forced to guarantee its 70,000 UK drivers a minimum hourly wage, holiday pay and pensions in March this year after a landmark supreme court ruling over their employment status. On Friday, Uber said its private hire drivers would now be auto-enrolled on to a scheme through which it would contribute 3% of earnings into a pension pot. Drivers can choose to contribute up to 5% of qualifying earnings but will be able to opt out. Read on. Uber shares close up more than 11% as ride-hailing company raises its outlook The ride-hailing company said in an SEC filing it now expects to report $22.8 billion to $23.2 billion in gross bookings for this quarter. “They say that crisis breeds opportunity and that’s certainly been true of Uber during the last 18 months,” CEO Dara Khosrowshahi said in the filing. Uber also said it now expects adjusted earnings before interest, taxes, depreciation and amortization to range from a loss of $25 million to a profit of $25 million. Uber previously said it expected its adjusted EBITDA for the third quarter to be better than a loss of $100 million. Looking ahead, Uber reiterated that on an adjusted EBITDA basis, it should see a profit in the fourth quarter. However, it added that “significant forecasting uncertainty” remains a factor. Read on. Covid-19 and The Future of Ridesharing Obi has launched a rideshare survey to gain insights into the effect of the pandemic on your daily rides. You can win one of three $100 gift cards too. Take the survey here. As Uber and Lyft drivers weigh COVID risks and pay, Austinites are paying more for rideshare services Austinites are struggling with high prices and drivers are unhappy too. Read on.