Lyft defies predictions by continuing to grow as a rival to Uber
Their continued spending spree to incentivize riders suggests otherwise. Uber seems to only give a first trip incentive, but I've gotten hundreds of dollars worth of free trips, 50% off trips, etc with Lyft. If riders aren't sticking around (and all the money they seem to be throwing around suggests that they aren't), then it doesn't seem to be defying any expectations.I'd expect a free or half-priced alternative to do well, I just wouldn't expect it to be a good business. I think it's telling that they didn't have any traditional investors in their most recent round. VCs seem to want nothing to do with Lyft at this point. Only time will tell if GM is a better investor than every VC who passed. I suspect that they're not and that Lyft doesn't have much of a business (Line trips are likely never profitable, and they seem to have a problem keeping riders around that Uber doesn't seem to have).