Lyft and Uber both are companies that have managed to revolutionize the entire horizon of the taxi industry.
Both of these companies in addition to a few others have made it very easy for commuters to travel locally without going through any hassle or trouble. With more drivers using this form of transportation, will it reduce the number of individuals who need auto insurance? Uber was undoubtedly the pioneer company behind this idea for an exceptional model way of transportation. But with the passage of time, other companies also entered the market and Lyft is one of the major competitors.
Frankly speaking Lyft has managed to cause a lot of trouble for Uber as some passengers say Lyft is better with the quality of the service, rates and the professionalism of the staff. A few months back, there were problems being faced by Lyft when they tried to relaunch in Houston, Texas. But fortunately, they have managed to resolve their issues with the administration and now it appears Lyft will be operating in the city of Houston soon.
Lyft has been giving Uber a tough time in dominating the entire taxi market as discussed in the above paragraph. In case of rideshare in Houston, it will pretty much be the same. Now that Lyft is in business along side Uber. Uber appears to be very concerned about its monopoly in the city. When Lyft re-enters the Houston market, they will probably launch travels at incredibly low rates and this will cause a lot of road bumps for Uber as they were also compelled to bring the rates down in order to stay more competitive. So keeping in view what’s already happening, it appears like both the companies are in it for the long haul and Uber is going to get a serious blow in terms of its revenues not only in Houston but everywhere Lyft follows.
There might be many reasons behind the potential downfall of Uber but the biggest one among the others is the fact that it has diverted its attentions to other parts of the world rather than staying focused in the United States. Uber recently launched its services in India, China, Latin America and different parts of the Eastern Asia. So may be Uber seems to be more concerned about the new market where there is little to no competition to beat its monopoly. But regardless of whatever the reason is behind Uber’s lack of interest, Lyft is developing its business at a very fast and consistent rate and it is soon going to be a massive transit company in the country. This holds true not only for Houston but the rest of the country as well.
The above argument is evident from the fact that while Uber has diverted its attention to the rest of the world, Lyft is furiously going after its share in the entire US market. After re-launching their services in Houston, several incentives were given by Lyft to its commuters. These included several different kinds of coupons as well as discount codes to serve as promotional schemes in order to attract the attentions of the maximum amount of people. As a matter of fact, Lyft ended up spending a large amount of almost $50 million in just a month on account of these coupons and discount codes throughout the different parts of the United States. I wonder how much they spend on their business insurance?
Looking at the overall US market, Uber appears to be at the verge of declination while Lyft is moving upwards and forwards constantly. So it may be concluded that Uber would have to put in a lot of effort if they want to sustain the blow that is being faced by them in the form of Lyft. This holds true for Houston, as well as the rest of the United States.