Lyft this week is like the theatre symbol, both sad and happy. First, Wall Street has downgraded certain ridesharing companies such as Lyft due to uncertainties over robotaxis. Second, Lyft in Portland incurs the highest surcharge, probably in history. And, what you are waiting for… July 4th freebies! Here’s the scoop.
Downgrade from Wall Street
Despite the increasing revenue and interest for ridesharing services, Canacoord Genuity has downgraded Lyft, plus Uber, from “Buy” status to “Hold” status, not because of their performance, but since their projects on robotaxis are not going along a good slope.
Canaccord Genuity is an investment bank and financial services firm operating worldwide.
This decision has signaled a growing unease about the impacts of autonomous vehicles on the traditional ride-hailing business model.
The financial company has lowered its price target for Lyft from $22 to a meager $14, in the hopes the uncertainties over autonomous cars will be resolved.
This move also reflects the broader sentiment shift amongst evaluators who are increasingly taking caution “about the long-term viability of company’s such as Uber and Lyft in a world dominated by robotaxis.”
The trends speak heaps. The past week, Lyft had a significant surge, but painted a less rosy picture recently when its stocks went down over 50 percent.
The core of the issue is clear: it’s the burgeoning robotaxi market.
Ironic because just before the weekend, Lyft has launched its very own forum to seek ideas from drivers at it expands its robotaxis.
In Ridesharing Forum’s previous report, Jeremy Bird, the executive vice president of Driver Experience at Lyft, was quoted as saying, “We don’t claim to have all the answers, but we’re committed to finding solutions together.”
Lyft Portland implements highest surge in the US
Meanwhile, in other Lyft news, starting tomorrow, Lyft riders in Portland, Oregon will need to pay a whopping more for each trip as the city has increased its rideshare surcharge to $2 per ride, the highest in any United States city in history.
Ridesharing surcharges pertain to top-up fees added to the standard fare of a ridesharing service.
If there’s a party to blame for this new policy, it has to be the city council, which approved the hike in the previous months, raising the charge from 65 cents to just $2. The city expects the new fee to generate a whopping $10 million yearly, too, for the Portland Bureau of Transportation, which officials are saying is “underfunded.”
Drivers, despite the possibility of earning more, do not like this new thing.
“I’m not happy about it because I think we are going to get less people now because it is too expensive,” trideshare driver Alma Diaz told Ridesharing Forum.
Happy Fourth of July from Lyft!
Brace yourselves for July 4th treats to be revealed here on Ridesharing Forum! Let’s start the rundown today.
Liberty Lyfts are poised and ready to give away free Lyft rides for Independence Day this July 4th! Yes, free Lyft rides. This is your chance to take advantage of these to do your errands or to tour around.
To be eligible for the free ride, sign up via the Lone Star Injury Attorneys website for the chance to win a $15 Lyft ride pass. One ride pass can be claimed per person. This July 3rd, the winners chosen for the free Lyft rides will be unveiled. Craving more ridesharing news? Share this article today!