Lyft revenues improve in 2016, but company still operating at a loss


Companies like Lyft and Uber are still younglings in the business world, so it should be no surprise to see losses racking up while they try to establish themselves and prove their idea makes sense. That is certainly the case for Lyft which is not projecting profit until 2018. Until then, Lyft hopes to continue to show things are headed in the right direction and that seems to be the case for 2016.

For the past year, Lyft saw revenues increase to $700 million versus the $200 million they brought in during 2015. That is nice growth for the company. On the other hand, Lyft did experience a loss of $600 million during 2016, which was larger than the 2015 loss of $412 million. The good news is revenues are growing at a faster rate than losses.

During 2016, especially during the latter half of the year, Lyft started taking steps to move toward profitability and away from the losses. Lyft stopped giving out so many free coupons which had served as a way to expose new customers to the service, they implemented better and tighter controls on new hires, and they reducing marketing expenses. Lyft executives also recognized the Lyft Line service performed better than their normal Lyft service and started to emphasize that offering.

source: The Information

About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, an LG G3, and a Motorola Moto X Pure Edition along with a Samsung Galaxy Tablet 10.1. He currently uses a Samsung Galaxy S8 and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active an active runner usually training for his next marathon, owns a MINI Cooper, and plays Dungeons & Dragons. Jeff has three mostly grown kids and a golden retriever.