Uber and Lyft have to raise prices if they ever want to turn a profit - Business Insider

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Uber and Lyft know they have to raise prices in order to turn a profit. Neither of them wants to make the first move.

Both companies need to raise prices and wean customers off the coupons that helped grow market share in years past if they ever want to turn a profit.

But things are different now. Following lackluster initial public offerings this year, both companies are under tremendous pressure from investors to turn a profit. The only way to get there — besides big job cuts — is convincing the public to pay what these rides actually cost to provide.

That shocked markets, sending Lyft's shares plunging as much as 6% in trading from the remarks through the end of the week. By his data, Uber has done more couponing than Lyft over the past few weeks, but has pulled back recently.

 

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The cab industry was regulated for a reason .to curb oversupply that causes congestion and fares were set for equal pay for equal work..uber miscalculated by lowballing fares to gain market share now they have to raise fares to profitability. Boom bye bye ridescare

My bets are on uber they seems to be sinking faster and harder .especially since they came out first on the minimum sexual assault reports every one knows that's the bare minimum they declared .lyft is playing the waiting game to see how far uber sinks

lyoshki Imagine paying a premium price for for a shit service. No wonder they won't take the first steps. In the end they'll both have to raise fares which will see the end of both of them.

Uber should go back to the model they started with. Providing rides for the wealthy. They could make money and pay their drivers well. Trying to be a mass transportation provider based on driving people in cars is just a bad idea.

Almost like the need prices to be ...... regulated to make a profit. Something that people figured out a 100 years ago with taxis.

Yes they can. Either does and others will follow. There is no competition, its an oligopoly 😅

I promise if u raise ube ror lyft prices so the ceo can get rich, I'll never use either service again. It'd already way more expensive than a local cab company.

Welcome to the Fed's wonderful word of inflation.

Not waiting for their moves, I already made mine. Never planning to use uber lyft again. DeleteUber

What are they waiting for? Its called coopetition. Their prices are too low if you ask me

Maybe they can do it, but if they do, they can try a ride pre-sale where they build in a volume discount - buy 10 rides for X $ and get the 11th for free.

Great for consumers. Bad for investors!

Lol they simple can't do that it's part of their play competition with public transportation

Time they do something, after paying the fines for the past....

dkhos Uber has a business expansion plan. I sent them to assist in turning a profit and helping citizen world wide. After sending the proposal and emails I recieved zero back. I'm honestly trying to help your companies next phase. But what do I know I'm just blue collar....

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More Women Sue Lyft, Alleging the Company Ignored Their Sexual Assault ComplaintsNineteen women are suing Lyft, saying the company failed to prevent sexual assault by its drivers and then ignored complaints from victims. According to The New York Times Lyft also failed to employ necessary safety measures that could have prevented sexual assault; the women also say that after the alleged assaults occurred Lyft failed to follow up with the complainants.
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