Uber Continues Battering Of Lyft In U.S. Market

Ride-hailing platform Lyft got pummeled after the company said it would lower prices and forecast Q1 profits below Wall Street expectations. Shares dropped 30% in after-hours trading Thursday, Reuters Auto File reported.

Photo Insert: Even Uber’s profit margins are a fraction of those that auto manufacturers consider acceptable.

Lyft’s outlook contrasted with the bullish view at much larger rival Uber – which now has a market cap of $71.6 billion to Lyft’s $5.9 billion at yesterday’s close. The gap will widen today barring a bounce-back at Lyft.

Lyft’s troubles underscore the challenges of selling transportation by the mile.

The US market for rides and deliveries provided by gig workers plugged into a data-harvesting platform is a duopoly on course toward monopoly, dominated by Uber.

But even Uber’s profit margins are a fraction of those that auto manufacturers consider acceptable.

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