Led by Uber, they've created a duopoly in the US that puts them on the road to profitability, according to Light Street Capital's Glen Kacher.
"If you rent a room that has five desks for your startup, there's not that much pooling efficiency," Kacher said.
He continued: "Those five desks are only used by your employees. But in an Uber or a Lyft situation, that car drives around multiple cities in a day and may have 15 or 20 riders ... that's a very unique economic solution as opposed to WeWork that's just carving a floor up into very tiny little spaces."
Kacher also sees the ridesharing market in the US as a well-oiled duopoly. Led by Uber, both companies are flexing theirLyft is inadvertently benefiting from the fact that Uber is fighting in ridesharing and food-delivery markets outside the US, Kacher said. Lyft is really only playing in "one and a half markets" — the US and Canada — but can also improve its margins by following Uber's lead and raising prices, he added.
Light Street, which manages $2 billion in global technology assets, had invested in both firms before they went public. The stakes are worth nearly $137 million, data from regulatory filings compiled by Bloomberg show.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Convicted Rapist Bill Cosby Owes $2.75M in Legal FeesBill Cosby has nearly completed a full year of his three-to-10-year prison sentence for drugging and sexually assaulting former Temple University employee Andrea Constand in 2004. He also, it turns out, owes lawyers $2.75 million.
Read more »
Exclusive: Saudi Aramco lures sovereign funds to hit $2 trillion IPO valuation - sourcesState-owned Saudi Aramco has approached Abu Dhabi Investment Authority (ADIA), S...
Read more »
YouTube's The Dolan Twins Drop $2 Million on Encino MansionYouTube's The Dolan Twins Drop $2 Million on Encino Mansion--and They're Only 19
Read more »
EXCLUSIVE: Jennifer Lopez Expands $2 Billion Fragrance Franchise With PromiseLopez’s 25th fragrance could help grow the franchise by as much as 30 percent.
Read more »
Uber says it will verify drivers with PIN numbersThe announcement comes six months after a woman was murdered after getting into a vehicle thinking it was her Uber.
Read more »