New leaked documents obtained by Bloomberg reveal an expensive rivalry between ride-sharing competitors Lyft and Uber, according to reports released Thursday (April 30).
Lyft is said to be spending millions to maintain second place in the ride-sharing market and shows slowing growth for the company, despite estimating revenues of $130 million for 2014, according to the document. Reports said that there is no information regarding Lyft’s operating expenses or losses, but it does delve into marketing costs. For example, the company said it estimates that marketing to one driver and 22 passengers in San Francisco costs a combined $530. The company also estimates that it takes about nine months to recuperate those costs.
Other revelations include profits, showing that one ride in San Francisco booked through Lyft Classic yields 92 cents for the company, including marketing costs but not including corporate costs, such as office space. Further, the document reveals that Lyft is planning to spend 60.5 percent of its revenue this December on marketing.
Lyft is expecting to make $796 million in 2015, a 512 percent increase from the year before, but still a slowdown in growth, reports said. The company remains unprofitable, but experts said it is progressing – the document revealed that Lyft now takes a 25.7 percent share of each fare, up from just the 6.7 percent it took in July 2014. That change was made last December, reports said.
This year, Lyft is expected to take a 26.2 percent share for each ride.
Also in the document are remarks about Lyft’s relationship with city officials as regulators struggle with the effects on customer safety and competition to traditional taxicabs, reports said.
Perhaps the most intriguing part of the leak is Lyft’s mention of Uber. According to Bloomberg, the company decries its rival as having an “anti-social culture” and an “exclusive mentality.” Lyft, on the other hand, considers itself a “trusted brand” and more of a “social experience” than its competitor.
Still, Uber remains undoubtedly the champion of ride-sharing in the market, with a valuation of $40 billion.