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- đź“° Lyft Expands to Europe
đź“° Lyft Expands to Europe
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Twelve years after being founded in the U.S., Lyft is finally making its first significant international expansion. Waymo rides in Austin already represent 20% of the rideshare app’s volume. Uber and Lyft are upset that the San Francisco mayor is giving exclusive access to Waymo. Lyft’s proxy battle heats up. Grubhub revives Seamless. We break it all down for you.
Lyft Expands to Europe with $198 Million FreeNow Acquisition
Image source: Lyft newsroom
SOURCE – Reuters
Lyft will enter the European rideshare market with its acquisition of FreeNow, a rideshare and mobility app owned by BMW and Mercedes-Benz. Lyft will acquire the company for roughly $198 million. The strategic move will nearly double Lyft’s potential market and provide access to major European cities, including London, Frankfurt, Paris, and Milan.
FreeNow operates in over 150 cities across nine European countries and recently achieved break-even status with a 13% year-on-year revenue increase in 2024.
Lyft CEO David Risher believes this is an opportune time for Lyft to expand to Europe, as nearly half of the European taxi industry is still offline.
However, Lyft will continue to face stiff competition from Uber in Europe, which leads in the rideshare market share, as well as Bolt.
In recent years, investors have soured on Lyft’s growth potential because it lacked a global footprint. It seems this acquisition addresses that concern.
Waymo Robotaxis Gain Traction in Austin, Capturing 20% of Uber Rides
Image source: Waymo newsroom
SOURCE – Bloomberg (Paywall free)
Approximately 20% of Uber’s rides in Austin were driverless during the last week of March, according to data from YipitData. This rapid adoption comes just a month after Waymo and Uber launched their partnership, with the data showing Waymo achieved 80% more driverless rides in Austin compared to its early days in San Francisco.
The success in Austin is partly attributed to Waymo rides being exclusively available through the Uber app, unlike in other cities where they’re only accessible via Waymo’s own app.
Waymo’s service in Austin covers a 37-square-mile operating zone, including areas from Hyde Park to downtown and Montopolis, with plans for future expansion.
The partnership’s success in Austin may influence future rollouts, with Waymo’s upcoming service in Atlanta also set to be offered exclusively through the Uber app.
Uber and Lyft Upset San Francisco Mayor Grants Waymo Exclusive Access to Market Street
Image source: Brett Sayles/Pexels
SOURCE – KRON 4
San Francisco Mayor Daniel Lurie has announced plans to reopen Market Street to ridesharing, but is only allowing Waymo robotaxis. Since the beginning of 2020, privately owned and rideshare vehicles have been barred from driving through the popular street.
Uber and Lyft have expressed strong opposition to the exclusive access granted to Waymo, arguing for equal access for all rideshare services on Market Street.
In a statement, Uber said, “We oppose his action to give Waymo exclusive access to Market Street.”
Lyft emphasized that the decision disregards thousands of human drivers and suggested that competition should be based on service quality rather than exclusivity.
Activist Investor Engine Capital Challenges Lyft’s Board in Proxy Battle
Image source: Lyft pressroom
SOURCE – Yahoo Finance
Engine Capital, an activist investor owning about 1% of Lyft, has nominated two directors to the ride-hailing company’s board, signaling the start of a proxy battle. Engine Capital nominated Alan Bazaar and Daniel Silvers for the board election, arguing for the need for directors with more public market experience.
Engine Capital has criticized Lyft’s underperformance compared to rival Uber and the broader market, citing concerns about the board’s composition and the company’s dual-class share structure that gives founders disproportionate voting power.
Lyft rejected Engine Capital’s nominees, stating they wouldn’t add new skills to the board, despite months of engagement with the activist investor.
The proxy battle comes as Lyft announces its entry into European markets through the acquisition of FreeNow, highlighting the company’s efforts to expand and compete with larger rival Uber.
Grubhub Revives Seamless Brand to Boost NYC Market Share
Image source: Grubhub newsroom
SOURCE – Bloomberg (Paywall free)
Grubhub is breathing new life into the Seamless brand in New York City, its largest market, as part of a strategy to drive growth and compete with rivals like DoorDash and Uber Eats. CEO Howard Migdal announced significant investments in Seamless, including promotional offers and free delivery from popular restaurants, to capitalize on the brand’s enduring popularity in the city despite years of minimal investment.
Grubhub holds a 22% market share in New York City, compared to DoorDash’s 26% and Uber Eats’ 52%, although Grubhub contends its market share is larger than this figure.
The revival of Seamless marks a shift from the previous one-brand strategy adopted after Just Eat’s acquisition of Grubhub in 2021.
This move comes after Grubhub’s recent sale to Wonder Group, led by billionaire Marc Lore.
Flying LAX to Vegas is Cheaper Than a 4-Mile Uber Trip to LAX
Flying LAX to Vegas is Cheaper Than a 4-Mile Uber Trip to LAX
SOURCE – YouTube
On this week’s episode of “Show Me The Money Club,” RSG Senior Contributors Sergio Avedian and Chris Gerace dive into a mind-boggling fare shared by a viewer. They analyze a trip where a passenger paid more for a short 4-mile ride from LAX to SoFi Stadium than the cost of a flight to Las Vegas. Watch the segment on YouTube to find out more!
QUICK HITS
In Türkiye, Uber is reportedly in negotiations to acquire Trendyol Go, a food and grocery delivery platform. – Bloomberg
BluSmart, an Indian electric taxi rival to Uber, halted operations Thursday following allegations by market regulators that its co-founder misappropriated funds from an affiliate company for personal luxury purchases. – Reuters
DoorDash expands its partnership with Coco, a sidewalk robot delivery company, in Los Angeles and Chicago. – DoorDash Newsroom
Must Listen Or Watch RSG Content
Here are this week’s featured podcast episode and YouTube videos:
RSG263: Justin Pappan on Renting a Fleet of Teslas! (EV Access)
I Waited 3 Hours At The Airport Holding Lot | Driver Diary with Sergio
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