Most people know mobile ride-sharing services are a hot industry, placing lots of pressure on the taxi industry. Two of the major players in this space are Uber and Lyft, generally targeting different socioeconomic segments of the market. These companies provide you with the ability to find a ride with the touch of a few buttons on your mobile phone. As Uber was a first mover, they have a more advanced mobile app that allows for more choices to the customer, targeting users looking for private transportation for slightly cheaper than typical taxis. Lyft is a lower cost offering targeting customers looking to “ride-share” with limited options available. Both have become popular quickly as the mobile accessibility and lower cost drive demand over taxis, which as an industry has failed to adapt to mobile technology well.
I would absolutely invest in these companies as they are solving a huge customer pain point that has existed for years. Everyone has used a taxi many times in their lives, and many of us have been upset at the cost or lack of transparency associated with the service. These companies provide solutions to those problems, while offering an interesting and fun experience of meeting new people. I believe these services will expand throughout the country quickly and entire world. I fully expect both companies to go public in the near term.