Lyft lost $600m in 2016
Ride-hailing service Lyft lost $600m in 2016, but the news isn't all bad for the company, as revenue rose to $700m. The figures are in stark contrast to the previous year, when total revenue was $200m and Lyft's operating loss stood at $360m. However, rival Uber is rumoured to have estimated losses for 2016 of $3bn.
Lyft lost US$600 million in 2016

It is common knowledge that ride-sharing apps like Lyft and Uber are currently bleeding money as they attempt to increase their market share. The only question is how much are they losing?

According to leaked financial data, Lyft lost a staggering US$600 million in 2016.

That’s a huge amount, but there is an upside. Revenue is growing faster than losses.

Last year, Lyft generated US$700 million in revenue, which is a vast improvement over 2015’s results where it posted an operating loss of US$360 million and total revenue of US$200 million.

In addition, Lyft’s US$600 million figure is far lesser than what Uber was expected to lose in 2016. As we reported just weeks ago, Uber was said to be on course to lose about US$3 billion in 2016.

Thanks to fierce competition for riders and drivers, it is believed that discounts and subsidies are likely to sustain as these companies seek to increase their market share. And with increased discounts and subsidies, this will inevitably affect profitability.

It will be interesting to see how long these ride-sharing apps can continue to lose money at this alarming rate.

Source: Recode