A Lyft Glowstache sits on the dashboard of a car in San Francisco on Feb. 03, 2016. (Photo Credit: Josh Edelson/AP Images for Lyft)
For years, ride-share competitors Uber and Lyft have been battling for prominence around the world, and as the smoke and massive VC funding begin to settle, it seems the smaller company may've finally pulled ahead.
CNBC reported yesterday that Lyft could be on track to reach profitability before its much larger competitor Uber, which has been pouring multimillions (or more) into establishing its own global network of drivers and riders. According to the site, people familiar with the finances of both companies speculate that Uber's expansive spending and Lyft's recent triumphs could have the latter coming out on top without too long of a wait.
In 2016, Lyft lost nearly $600 million on its expanding operations, which include partnerships with a growing list of local ride-hail companies around the world, and hauled in $700 million in revenue, according to CNBC. As the site The Information points out, this represents a size-able improvement on the previous year, which saw Lyft's losses double its revenues.
In this Tuesday, Jan. 12, 2016, file photo, a driver displaying Lyft and Uber stickers on his front windshield drops off a customer in downtown Los Angeles. (Photo credit: AP Photo/Richard Vogel)
Lyft co-founder and president John Zimmer told CNBC, "We tripled our business and grew faster in 2016 than 2015, [we're] growing faster than the competition and that is what we're going to continue to do." He continued, "In 2017, we're going to keep the pedal down and our focus has been taking care of drivers and passengers, which is leading to a greater preference for Lyft."
Uber, meanwhile, currently has India's ride-hail market it its sights--a potentially vital share, given the loss of its standoff with Chinese company DiDi to the tune of $2 billion. To inflate its customer base, the company has also begun offering free credits in addition to habitually lowered rates.
Perhaps all that's left to do as this race enters its final sprint, then, is sit back, relax, and enjoy the ride.
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