“We’ve definitely seen pricing in Lyft go up.” “Part of that is the clouds around Uber have made Lyft relatively more attractive,” a person told to TechCrunch. In April, Lyft secured a funding of $600 million at a $7.5 billion valuation. “But that rise is also a function of Lyft’s recent round of fundraising,” he added.
Uber is valued at around $68 billion, but Uber is currently valued at roughly $50 billion by secondary shareholders, reported TechCrunch. There could be innumerable reasons to say that including the resignation of Travis Kalanick, who was the CEO of Uber.
It is no surprise that Uber’s rivals will surely hope to take an advantage of all the mess happening with Uber, in result to it, Lyft’s stock is on the rise and interestingly, it doesn’t only limit to Lyft while on the other side, it so depends on how Uber is going to bounce back.
CBInsights noted that all the competitors have now collectively received roughly double the amount of capital of the Uber’s disclosed funding in the year, 2017. The disclosed funding of Uber accounts $15.1 billion while the rest of the market accounts $30.8 billion. The competitors are too many, the list includes, Didi Chuxing, Lyft, Ola, Go-Jek, Grab et al.
Didi Chuxing has raised a huge sum of $5.5 billion during May 2017 and it is believed that it plans for the international expansion while many other players have secured millions of dollars of funding recently, including Go-Jek raising $1.2 bn in Series C round; Ola, Careem raising hundreds of millions.
This significant shift is quite noticeable and says a lot that puts on a note that Uber might not be so uber (great) for now, which it once used to be. Although Uber has a massive pool of capital in hand to give a tough fight in different geographies and isn’t going anywhere, but taking everything in Uber’s way is no more digestible.
Uber has always been seen as the first competitor to every other ride-hailing startup based in every corner of the world, but we can not deny that it is unpredictable to figure out the strategies of how Ola is planning in India, how Go-Jek is putting its step in Indonesia, how Grab is looking at Philippines, etc etc.
While the big eyes are set on Didi Chuxing because not only it has mammoth amount to disrupt the international market but Uber’s China merger with it could become another challenge for Uber in the international market when it has to compete with them yet again, knowing the fact that they sit on Uber’s board as well.
Uber recently introduced the tipping on-demand feature with several more developments and strives to improvise the driver’s conditions. Well, finally, they thought of doing something better for its drivers who work as independent contractors while it is struggling through the tough times.
The recent filing from Google’s Waymo in the lawsuit against Uber adds much to their worries as well that if Uber loses, Google might end up eating away a truckload of money from them (you can talk about their future later).
While everything isn’t going well with Uber, its rivals, Lyft, Grab, Didi Chuxing and many other ride-hailing startups will surely try to leave no stone unturned to capture the market, gain traction, and leverage their brand value. Needless to say, that’s pretty much obvious!
I read. I write. A threat to humor, if one liners could kill. Twitter: @ayushxgarg
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