Lyft is smiling their way to the bank. U.S. carmaker GM just invested $500 million in ridesharing app Lyft, pushing their valuation up into the stratosphere - now a multi-billion dollar valuation.
Given this impressive round of fundraising, it appears that Lyft will continue to compete against Uber's UberX for ridesharing business. Nevertheless, we don't see Lyft challenging Uber in the black car department and/or UberPool. All in all, Lyft is holding their own in running their popular ridesharing services and LyftLine carpooling services.
Lyft has taken big steps to remain active, to remain a part of the ridesharing discussion. Lyft drivers have been known to collect far more earnings than experienced Uber drivers because of commission kickbacks after surpassing 40 hours a week.
Uber drivers will only reach these earnings if promotions are held to reward them with exclusive hourly guarantees. Such promotions helped Uber drivers to make up for lost earnings post-East Bay and South Bay fare drops back in August 2015.
Uber and Lyft are on a mission to recruit new drivers. Existing drivers remain the top priority, a strong voice to convince new drivers that ridesharing is worth the risk to make a living on the road.
Congratulations to Lyft for their hefty $500 million investment from GM. Hopefully, Lyft drivers can resort to new and/or used vehicles to perform ridesharing services rather than ruin their personal cars. GM may provide an alternative, giving Lyft drivers access to reliable vehicles to avoid downtime associated with major repairs and high maintenance costs.