Uber and Lyft part ways en route to profitability

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Uber and Lyft part ways en route to profitability

San Francisco, CA-based ride-hailing pioneer Uber Technologies and its much smaller rival Lyft Inc., appeared to have chosen separate paths towards profitability, as Uber’s ride-sharing service which is five times larger than Lyft Inc.’s with a market valuation of $69 billion, way above the leading US carmaker General Motors Co., had been focusing more on to expanding across five continents, while Lyft Inc.

had still been focusing on providing lifts in the North American streets. As beforementioned, Uber Technologies usually focuses on more markets across the world which had also resulted in clashes with regulators in London, Germany and some Asian countries including India, while Lyft Inc.

has been engaging in moving people around the North America. Besides, apart from its ride-sharing service, Uber had been laying off heavy money on food delivery business, autonomous cars, long-haul logistic operations alongside commercial usage of drone shuttles, but Lyft Inc.

had yet to show any kind of interest on expanding beyond its ride-hailing services. Nonetheless, despite Uber’s money-draining efforts that involved at least $1 billion in losses this year as forecasted earlier, a majority of Wall St.

analysts were preferring Uber Technologies’ stocks given its divergences which would likely to reach profitability by early 2021, a year earlier than prior projection. However, some Wall St. analysts said Lyft Inc. was a less-risky investment considering its focus on North America which could insulate its operations from extravagant losses in other businesses that Uber was experiencing, as a Cascend Securities analyst, Eric Ross, said over the weekend, “We prefer Lyft because it focuses on the most profitable business in North America, the largest rides market. ”