Uber, Lyft make ride-hailing adjustments as they seek profitability
Uber and Lyft both announced moves this week as they look for a profitable path forward.
The big picture: Both companies have been devastated by the effects of the coronavirus pandemic, delaying their efforts to achieve profitability. But they are adapting for the long haul.
Uber licensed its ride-hailing software to a public transit agency in Marin County, California.
- Uber app users in Marin County will see a new option called Marin Connect that will allow them to book a ride on a shared or wheelchair-accessible van operated by Marin Transit.
- It's the first time Uber has licensed its software and could represent a bigger push into mass transit as an added source of revenue.
Lyft is pledging that every vehicle on its platform will be electric or powered by another zero-emission technology by 2030.
- Morgan Stanley analyst Adam Jonas, in a note to clients, reminds that EV adoption will be driven by cities and ride-sharing fleets, and he expects similar announcements to come.
- Yes but: As my Axios colleague Ben Geman noted earlier this week (and former Obama Energy Department official Julio Friedmann reiterated in a Twitter thread last night), Lyft's plan requires substantial national policy changes and incentives.