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  • KPB & Co Research


As a London Judge temporarily re-instates Uber's right to operate in the U.K., many wonder which ride-sharing company will dominate what part of the globe in the future. Comments made by venture capitalist - Chris Sacca - suggest that the sentiments in silicon valley leans towards the "winner takes all" in all geographies for ride sharing. However there are a few investors who believes the opposite. Investors in Lyft certainly believes that there is space for another riding hailing company as to some extent they have been proven right.


Lyft has raised US$600Mn in Series I financing from Fidelity Management & Research Company, Senator Investment Group LP and others, pushing its post-money valuation to US$15.1Bn. So far the investments in the company has helped it to secure a market share of about 35% while Uber underwent numerous slip ups.


Chris Sacca on The Ride Sharing Market



In our view, all indications point to the ride sharing map shared up among four key players. The ride sharing business comes with huge fixed cost for product development and marketing, and so requires significant market share for investors to earn a good return on capital invested. In this context, it appears that the ride-sharing map will be drawn as follows based on the companies that already have first mover advantage: Uber dominant in the Western World, Didi Chuxing dominant in China, Grab dominant in South East Asia, and Ola dominant in India. It is important to point out that Ola, Grab, and Didi Chuxing have all collaborated on providing products in competition with Uber, which seems to have global domination in mind. In addition, Uber went to China and had to wave the "white flag" as competing became costly with Didi Chuxing. The dynamics have changed with Masayoshi Son, who is also a major investor in Didi Chuxing, working his way onto Uber's board. Lately he has been publicly requesting that Uber stay in the west and avoid global competition. At this point you maybe wondering what about Lyft? Lyft, with operations in the US and Canada, appears to be in "no man's land", but for the time being is coexisting well with the first mover. If investor sentiment is right they maybe a good buyout candidate later on.


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