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Prices for Uber, Lyft Rides Could Increase

by Megan Hill

Sep 16, 2019

Uber and Lyft. Photo: Jonathan Weiss | Dreamstime.com

Feature

Uber and Lyft both lose a lot of money, in part because they give large discounts on rides as they compete for market share. That could all be ending, though, according to Wired.

Both companies are raising prices for some rides and, an Uber official said, the price war between the two may be ending.

“We and Lyft are big-time competitors here and have been for some period of time, but for now we’re seeing generally, category positions that are stable,” said Dara Khosrowshahi, CEO, Uber. “We are focused on improving profitability in this market.”

Uber recently reported a $5.2 billion quarterly loss; Lyft, meanwhile, reported a $644 million loss. Uber’s losses in part come from its initial public offering in the spring, but also from expanding the Uber Eats service and declining revenues in Latin America, where the company faces competition from Chinese ride-sharing firm Didi.

Lyft said its losses are from growth-related spending, expected to ease in the near future. Neither company told investors when they would become profitable.

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