Lyft, Uber Technologies Inc.’s ride-hailing rival, has been
given a new opportunity to overthrow its competitor due to Uber’s latest
string of unfortunate events. Uber is losing momentum after series of scandals
that include allegations of sexual harassment, lawsuits, and videos of
executives mistreating drivers. The situation has given Lyft a chance to seize
the moment and pitch for new investors. Consequently, a new funding will be
created in order to increase the company’s net working capital to at least $500
million. In addition, people familiar with the matter indicate that the San
Francisco company will have a valuation of between $6 billion and $7 billion.
Lyft, who only operates inside the United States, is now second to Uber by
market share, but the company is growing up and plans to depose its rival
sooner than later.
Relevance to Marketing:
Lyft pitching for new investors on a new funding is a good example
of the marketing concept. The company is putting all of its efforts on knocking
Uber out of first place in market share. In fact, Lyft has marketed itself to
drivers and riders as a kind of anti-Uber. In
addition, Lyft is using Uber’s recent unwelcome events to cultivate a more
driver-friendly reputation. Furthermore, competition exists in this article as
two of the largest online transportation companies are fighting against each
other to deliver the best customer experience. They also wish to be pioneers on
providing flexible and independent jobs to drivers.
Application
to Other Businesses:
The
article serves as an example to others of how important is to maintain a
business profitability and reputation. Without investors and profitability, a
business will not survive in the long run. In addition, the reputation of a
business is essential to its survival as the consumers’ confidence has a direct
effect on a company’s durability.
Name: Javier
León
Class: MKTG
3343
Article: Lyft Seeking At Least $500 Million in
New Funding
Link to WSJ Website: https://www.wsj.com/articles/lyft-seeking-at-least-500-million-in-new-funding-1488418612
No comments:
Post a Comment