Uber, Lyft: Ride-hailing Landscape (Mergers, Apps, Ridership, Revenue and other news)

mood · Nov 12, 2020

Lyft’s ride-hailing business is starting to claw its way out of a deep hole
Ridership and revenue are still down year over year, but they’re steadily improving compared to earlier this year
November 10, 2020
https://www.theverge.com/2020/11/10/21559174/lyft-q3-2020-earnings-rides-prop-22-covid

Lyft continues to struggle to bring in money amid rising case numbers of COVID-19 in the US. The ride-hailing company lost $459.5 million over the last three months, with its adjusted net revenues down 48 percent year over year.

Its ride-hailing is significantly smaller than it was last year. This quarter, Lyft reported having 12.5 million active riders, compared to 22.3 million in the third quarter of 2019 — a drop of 44 percent. It’s a deep hole, but Lyft is starting to claw its way out. The company’s ridership has been steadily growing over the course of the year: this quarter’s number is 44 percent improvement over Q2.
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Amid all that red ink there was one positive note for Lyft. The passage of Proposition 22 in California was an obvious win for the company which, along with Uber and DoorDash, spent over $200 million to push for its approval. The ballot measure exempts Lyft from a state law requiring it to classify its drivers as employees.
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mood · Nov 12, 2020

Uber is still getting hammered by COVID, though things are looking slightly better
The company’s gross bookings only fell 10 percent year over year, compared to steeper drops in previous quarters
November 5, 2020
https://www.theverge.com/2020/11/5/21551683/uber-q3-2020-earnings-revenue-loss-delivery

Uber is still getting pummeled by COVID-19, as the raging pandemic continues to drag the company’s ride-hailing business down. Uber lost $1.1 billion over the last three months, with its adjusted net revenues down 20 percent compared to the third quarter of 2019.

Gross bookings in its ride-hailing division, or the amount of money it takes in before paying drivers, fell 50 percent year over year. It’s grim position, but also a steady improvement over the second quarter, in which Uber’s ride-hailing business was down 73 percent year over year. Still there was no mistaking the impact of the coronavirus pandemic on the company’s core transportation business. Uber brought in $2.8 billion in adjusted revenue, an 18 percent decline year over year.

But the company sees a light at the end of the tunnel. “All early evidence we see makes it increasingly clear that it’s question of when, not if, our mobility business will recover,” said Uber CEO Dara Khosrowshahi in a call with investors.
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The company did score a big win in California, where its Prop 22 ballot measure won by a large margin. Khosrowshahi discussed building on that victory by advocating for similar measures at the national and global level.
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mood · Nov 12, 2020

Uber will let riders reserve trips up to 30 days in advance and pick a 'favorite' driver
Uber Reserve rolls out in select cities this week
November 10, 2020
https://www.techspot.com/news/87546-uber-riders-reserve-trips-up-30-days-advance.html

TL;DR: The ride-sharing portion of Uber's business model took a bit of a hit during the Covid-19 pandemic, but that hasn't stopped the company from coming up with new ways to draw in customers. This week, Uber is rolling out "Uber Reserve," a mobile app feature that will let users book a ride up to 30 days in advance.

On the surface, this might not seem like a very big deal; and for the average user, perhaps it isn't. However, if you're planning out a country-spanning trip on a tight schedule, or if you simply must be in a certain place at a certain time, Uber Reserve could be a great solution to that problem.
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You'll be told exactly how much you'll need to pay for the trip far in advance, and you can even select a "Favorite" driver to ferry you to your destination. Furthermore, if your driver fails to show up at the scheduled time, you get a free $50 in "Uber Cash" as compensation.
As usual, you can also select some of your trip preferences, such as the vehicle's temperature, the amount of conversation you want to put up with, and the number of bags you're carrying.
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Uber Reserve won't be available everywhere right away, but the company is piloting the feature in 20 initial cities, including major destinations like New York City, New Jersey, Houston, Austin, Chicago, and Phoenix. On launch, Uber Reserve only supports Uber Black and Black SUV rides, but Uber X and XL will arrive at a later date.
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Uber: Push a Button, Plan Your Ride: Introducing Uber Reserve

mood · Nov 14, 2020

Didi takes its overseas expansion drive to New Zealand but is the ride-hailing market big enough to make a difference?
November 13, 2020
https://www.scmp.com/tech/start-ups...seas-expansion-drive-new-zealand-ride-hailing

Didi Chuxing is launching new operations in Auckland, New Zealand as China’s largest ride-hailing services provider continues an aggressive overseas push despite pandemic-related headwinds and stiffer competition in its home market.

“We see the Australia and New Zealand markets as an outpost for us to grab a bigger share of the global mobility market,” said Lyn Ma, head of Didi’s business development in Australia and New Zealand, in an interview this week.
Globalisation is a core strategy for Didi after it became the top player in mainland China’s saturated market. Since pushing Uber out of China four years ago, Didi has been on a global acquisition spree, investing in Grab and Ola in Asia, Lyft in the US, 99 in Brazil, Taxify in Europe and Careem in Dubai.
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One rival did not seem impressed by Didi’s arrival in New Zealand.

“Didi will offer incentives to passengers to build up their market share,” said James Fisk, founder of Zoomy, which operates in Auckland, Wellington and Christchurch.
“History has shown that once these discounts ease back, customers revert to the companies that offer the best overall product ... as the only locally-owned rideshare service, we feel very comfortable.”

Ride-hailing consists of hailing a private vehicle or a taxi via a mobile app or platform for a shared or individual ride.
Although users have taken to the convenience of ride-hailing, the industry has faced safety concerns and has had to deal with the fallout from Covid-19, such as social distancing and improved in-car hygiene measures.
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Despite being a relatively small ride-hailing market, New Zealand is growing fast.
Overall revenue from ride-hailing in the country is estimated to reach US$225 million in 2020 [...]
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mood · Nov 18, 2020

Lyft extends its Emergency Help feature to drivers and riders across the US
The rideshare company and ADT started testing the safety measure earlier this year
November 18, 2020
https://www.engadget.com/lyft-adt-emergency-help-roll-out-nationwide-170046220.html

All Lyft drivers and riders in the US can now quickly connect to an ADT safety specialist if they need some assistance. The ridesharing company announced the Emergency Help option in October 2019, and it started testing the feature in some markets earlier this year.

Emergency Help allows Lyft users to "quickly and discreetly receive help for any in-ride situation, whether or not they wish to or are able to call 911." Being able to seek real-time assistance in an uncomfortable scenario without alerting the driver could help ensure the safety of passengers.
Riders can have ADT call or text them, or call 911 on their behalf.
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The security company can share a rider's live location with authorities, along with other details about the ride, including the designated drop-off location, and the vehicle's license plate number, make and model.
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Lyft: Lyft Launches Emergency Help, Supported by ADT, to Riders and Drivers Nationwide

mood · Nov 24, 2020

Uber and Lyft just scored a huge federal transportation contract
The five-year $810 million contract authorizes the companies to provide transportation to over 4 million federal employees
November 23, 2020
https://www.theverge.com/2020/11/23/21611553/uber-lyft-gsa-government-contract-amount

The US government awarded a big transportation contract to Uber and Lyft this week, authorizing the ride-hailing companies to provide transportation to up to 4 million federal employees and their families.

The General Services Administration, the procurement arm for the federal government, granted the five-year contract to Uber and Lyft, the companies confirmed. The contract is worth up to $810 million, though it’s unclear how much each company will receive.
The contract was awarded to Uber for Business, the ride-hailing company’s business-to-business division.
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Lyft also hailed the contract as a good sign for the growth of its business. “Lyft already works closely with select agencies, but with this award under our belt, we see an opportunity to be the preferred rideshare partner for many other top federal agencies,” a spokesperson said.

The contract with Uber and Lyft “modernizes official travel and will make it easier, and cheaper, to use rideshare services for official travel,” Federal Acquisition Service Assistant Commissioner for Travel, Transportation and Logistics Charlotte Phelan wrote.
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mood · Nov 27, 2020

India to allow Uber and rivals to charge 20% commission
Industry experts had warned that a 10% cap would hit revenue and operations
November 27, 2020
https://tech.hindustantimes.com/tec...s-to-charge-20-commission-71606472741604.html

India will allow app-based taxi aggregators such as Uber Technologies and Ola to charge up to 20% commission on ride fares, according to guidelines issued on Friday, diluting an earlier proposal to cap fees at 10%.

The final guidelines, which are to be considered by the state governments when issuing licences to aggregators, say drivers should receive 80% of the ride fare with the taxi companies receiving the remaining 20%.
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The government guidelines also recommended that so-called surge prices at busy times can be a maximum of 1.5 times the base fare and that companies must provide insurance cover for drivers and limit them to working no more than 12 hours a day.
India accounts for an estimated 11% of Uber's global rides annually and is SoftBank-backed Ola's home market.
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TechCrunch: India sets rules for commissions, surge pricing for Uber and Ola

But not everything about the guidelines will hurt Uber and Ola, both of which had no comment to share on Friday. The rules will enable the companies to offer pooling (shared car) services on private cars, though there is a daily limit of four intra-city rides on such cars, and two weekly inter-city rides.

Ujjwal Chaudhry, an associate partner at Bangalore-based marketing research consulting firm Redseer, said the guidelines by the government will have a mixed impact.

“[...] But, overall the impact of these guidelines on the ecosystem growth are negative as capping surge and platform fee will ultimately lead to reduced earnings for 5 Lac (500,000) drivers (currently on these platforms) and will also lead to increased prices and higher wait times for the 6-8 crore (60 to 80 million) consumers who use it for their mobility and commute needs,” he said in a statement.
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mood · Dec 30, 2020

Uber raising trip prices 24% in new year in response to Seattle’s new minimum wage law for drivers
December 30, 2020
https://www.geekwire.com/2020/uber-...sponse-seattles-new-minimum-wage-law-drivers/

The cost of an Uber trip in Seattle will jump about 24% starting Friday as the ride-hailing company is raising its prices in response to a new law requiring drivers to be paid the city’s minimum wage.

The Seattle City Council unanimously voted in September to adopt new regulations designed to ensure Uber and Lyft drivers earn the city’s $16.69 per hour minimum wage in 2021.
The transportation network companies are now required to pay drivers at least $0.56 per minute when there is a passenger in the vehicle as well as a per-mile rate to cover expenses.
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Uber’s fare increase is the first of three planned increases over the next three months, and by April the company expects fares may be 50% higher.

“We know that any price increase is frustrating for customers, and we continue to look for new ways to reduce prices while complying with the City Council’s laws,” Uber spokesperson Harry Hatfield said.
Lyft hasn’t announced an immediate price increase but has said in the past it could do so in the future as a result of the new law.
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Rachel Lauter, executive director of Working Washington, said in a statement that it makes no sense for a multi-billion-dollar company like Uber to “alienate thousands of customers in a key market” with a fare increase “in a fit of spite over having to raise pay for workers.”
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