Uber has always topped the charts when it came to ride-sharing business. It doesn’t seem to be the same anymore and now it is losing the stronghold which it once had on the ground of United States. In the recent past, the company has been going through a lot of downfalls and is struggling to get back to normal.
Travis Kalanick – Leaves without a replacement
Almost a week back the CEO of the ride-hailing organization Uber went on leave without providing any kind of prior notice or a replacement as well. In the recent times, the company has been witnessing a lot of pitfalls and Kalanick wanted to bring in changes with the help of a COO.
Unfortunately, the company has been facing many issues right from the beginning of the year. It started with Kalanick stepping down from the board of when “#DeleteUber” went viral on the social media platform Twitter. And now here is the company where the chief executive has left without a prior notice.
Uber’s Market Share stooping low
The US market of Uber has been stooping low, it was at 84 percent of the share market and it has gone down to 77 percent at the end of May according to the analysis made by the reach organization Second Measure. It is just the part where America is being considered; on the flip side, we can see that there has been growing with the business on the global market.
Global growth in the market
The ride-hailing behemoth Uber has made almost 3.4 billion dollars in the first quarter of the year. Though the global market is helping the company expands its horizon, on the global level. It is stumbling in its home ground and the revenue has slowed down and the shareholders are concerned about it posts the crisis which the company has been facing from past few months.
Is Uber losing the top position?
Uber has always been on the top since it has made it big in the ride-hailing industry and now we can see that there are possibilities of it losing the top rank. The company has been dominant long since the tough competition from its rival companies Lyft, Ola in India and Grab in Southeast Asia.
Its strong contender Lyft has bolstered its service in around 100 cities in the US and we can see that the company is bringing a strong hold. On the other hand, we see that Uber is trying to fix the recent issues which have come up. The NYC drivers have been paid with the miscalculation of the commission fees and it has almost lost the trust which the drivers had to the company and is trying hard to gain it back.
The investors of the company state that the company is actually towards a self-destruction. We can say that it is true to some extent when we give a closer look at the incidents which have been taking place inside and outside of the company. Though the investors have a gut feeling of this kind, we can see that Uber has been valued at around 62.5 billion dollars. This is the aspect where the company has tried to give an assurance to its stakeholders that there are prospects for the company to grow and make it even better.
Lyft rises at the price of Uber’s allegations
There have many allegations made against the company, an article by one of its former employees saying that the work culture is not healthy and there is sexual harassment taking place as well. A medical record of a rape victim which was mishandled and a lawsuit by Google for stealing trade secrets for its self-driving venture and the prominent one is “#DeleteUber”
When the users started to delete the app from their device they shared the screenshots of it on Twitter. They went on to explicitly mention that they will better use “Lyft” for their rides rather than using “Uber”. Similar apps like cabily also see a huge increase in sale check here. The company made a mistake mentioning that the rides were available at JFK Airport while the local taxi drivers were protesting against the executive order of the US President.
The sudden disappearance of Chief Executives
Travis Kalanick the Chief Executive Officer of the company went on a leave last week, without naming any replacement in his place. Apart from that factor, there was special board meeting where it was said that the company will run in his absence and will be taken care by 14 executives of the company and most of them are new in their respective jobs.
A slowdown in annual growth
An analysis shows that there has been a decline in the annual growth by around 40 percent by the end of May when compared to the previous year which was around 55 percent. The main reason behind is the #DeleteUber campaign which took place on the internet and people started to look out for other alternatives. The hardest hitting points of this particular campaign were in NYC, Boston, and San Francisco.
Lyft rising up in the US market
When we consider Uber, the service is available in almost all the parts of the world. On the flip side, Lyft is available only in the US market and it is giving a tough competition to Uber. Lyft started off the year on a high note by expanding it to around 100 cities in the USA.
The latter was successful in raising funds of around 600 million dollars. Though the valuation of the company seems to be pretty low around 6 to 7 billion dollars we can see that the company is making a consistent progress. The company has been able to make revenue of around 708 million dollars which is said to be just 1/9th part of Uber’s share.
There has been a growth of 135 percent with the bookings for the rides with Lyft. It is said that the gross revenue which the company has made in the first quarter of the year is supposed to be around 1.1 billion dollars. Uber had it around 4.5 billion dollars and we can say that Lyft is getting close to what Uber has made over the years.
The success rate of Lyft
Lyft has been able to make it big prominently in its home ground where it has around 40 percent of the market gathered. Lyft’s market share is growing tremendously. Meanwhile, the consumers of Uber are having a negative impression towards Uber and the way it is organizing the company.
The aggressive ways of the CEO to run the company has brought in a huge downfall to the company and it has been stumbling and faltering a lot in the recent times. It is high time that the company regains what it has lost over these past few months. The shares Lyft’s are high on demand as the company is gaining a lot of business from all the corners of the country.
It is definitely going to gross in a huge amount of revenue post its expansion to around 15o cities and it is going to get harder and tougher for Uber to hold on to stay on the top. It is a way to go for Lyft as Uber is trying to get grip on the situation which is taking place at its end.