ERA Limited in HK Calls the Race between the Ride Hailing Giants and the Winner

 

Contact Information
ERA Limited
Shanghai Commercial Bank Tower 12 Queen's Road Cen
Hong Kong
- 999077
Hong Kong
+(852) 8125 7514
info@eraltdhk.com
 
As Uber and Lyft race towards initial public offerings in 2019, the ride-hailing arch-rivals will face a stark reality: Neither company is profitable.

Uber's IPO is expected to be the largest ever for a tech company-currently valued at $70 billion, the firm's market cap is projected to swell to $120 billion upon going public. But while its revenues have ticked up on an annual basis, the company continues to shed money. In the third quarter of 2018, Uber lost $1.07 billion. It lost $4.5 billion in 2017, the year Travis Kalanick departed as CEO after months of negative press on a range of company practices. The smaller, U.S.-focused Lyft is also reportedly burning through cash.

Lisa Chu of ERA in Hong Kong thinks the future of ride-hailing could be also bolstered by local policies and partnerships that reflect broader shifts on the transportation landscape, experts say.

In particular, congestion pricing-attaching a user fee to roads in high-traffic urban centers, fluctuating at different times of the day-could be a boon for the companies, because surcharges on single-occupancy driving could encourage the use of less-expensive carpool offerings.

"I think it's relevant to think about that strategy as a substantial game changer," said Chu.
London, Stockholm, Singapore, and other cities around the world successfully implemented congestion pricing plans to positive effect, but no U.S. city has followed suit yet.

New York City, the largest U.S. ride-hailing market, has tried, however. It has been mulling some form of traffic surcharge since 2008. That push, led by then-Mayor Michael Bloomberg, failed to muster the needed political support in outer-borough neighborhoods. Two more efforts in 2015 and 2017 also flopped, although the state's 2018 budget did include a surcharge on taxis and ride-hailing vehicles entering the busiest parts of NYC.

Company Info:
ERA Limited
Email: info@eraltdhk.com
Website: https://www.eraltdhk.com
For more information, visit: https://www.eraltdhk.com


era limited, era limited hk, era

 

If you have any questions regarding information in this press release, please contact the person listed in the Contact / Company information box of this page. Please do not attempt to contact Market Press Release. We will be unable to assist you with any information regarding this release. Market Press Release disclaims any content contained in this press release.