Suburban transit experiments with subsidized Uber, Lyft rides The public bus system that serves Dublin, Alameda and Pleasanton willsubsidize fares for peoplewho take Uber or Lyft. The experiment is the first of its kind in California as the suburban network, called Wheels, deals with challenging logistics on how to have a public transit system in a sprawling area.(San Jose Mercury News)
Lyft wanted to sell itself, but couldn't find a buyer Lyft tried to sell itself, but has not found a buyer. The San Francisco company hasn't been able to get a willing buyer due to its cost, as it was valued at $5.5 billion, and the challenges of getting profits in the ride-sharing business. With $1.4 billion in the bank, Lyft can afford to remain independent for a bit. (New York Times)
Uber's point man on automated driving came from Ford If Sherif Marakby is successful managing the transformation of a fleet of 100 Volvo XC90s into self-driving vehicles, it couldput Uber in the leadin the race to commercialize autonomous driving. The former senior Ford engineering executive, who joined Uber in April, knows his way around vehicle architectures, powertrains and electrical systems.(Automotive News)
"Lyft is not profitable, said a person briefed on the company’s finances." Interesting article. So even with an estimated $2 billion in ride fares and a 20% cut, it can't make money on a $400 million revenue stream. However, if they can last long enough until the driverless cars become a reality, will they be able to offset vehicle and technology costs when they keep the full $2 billion? If GM keeps investing and Lyft goes public, then it can raise more funds to add to their current $1.4 billion cash, and they might just be able to hold out.
New law to impose a tax on every Uber/Lyft fare. Granted, it's only a nickel, and only applies in MA, but what comes next, background checks? Apparently voters turned down a measure that would have exempted Uber/Lyft to comply with driver background checks in Austin, and both firms abruptly left. http://www.forbes.com/sites/institu...ustry-as-taxi-medallions-plunge/#632a9aa74fe2 Regarding Austin... http://ij.org/10000-uber-lyft-drivers-not-working-austin-voted-regulations/
John Arnold @JohnArnoldFndtn 3h3 hours ago Craziest thing about Uber's financials is that they were able to place a $1.1 billion leveraged loan last month at just 5% interest rate.
More staggering losses for Uber. They better start ramping up their driverless cars and get access to that 80% they're giving to the drivers! http://www.bloomberg.com/news/artic...llion-in-first-half-of-2016?cmpid=yhoo.hosted
Forget driverless cars, watch out for the driverless semi, coming soon to a freeway near you. https://amp.businessinsider.com/ube...ferent-company-that-you-thought-it-was-2016-8 "Uber revealed it had spent $100 million to get into the trucking business with its purchase of Otto, a startup that makes kits to turn traditional trucks into autonomous vehicles." "...we are getting in the trucking business," Kalanick told Business Insider. "Part two is that it is a multitrillion-dollar business globally as well. I have always talked about the consumer ground-transport business being a multitrillion-dollar business. Now there's this other one called trucking. It is a challenging, interesting, nuanced business, and it is going to be intense getting into it, but that's exciting to me.
The consensus on Seekingalpha is that Uber loses about 7% on every ride, because they started a price war with Lyft. It might be good for the customers, but not good for anyone else. Also, people who saw income taxes of Uber drivers said they made shit...