The transportation business in Canada is accepting an enormous surge since Lyft – A prevalent application ride-hailing application in the US announced its venture into the locale before the year’s over.
Lyft has been a consistent adversary of Uber in the US and being the two biggest players in the Mobile transportation industry, they have been in a ride-hailing war for a long while. Be that as it may, with Uber’s current misfortunes in London, official firings, and patent encroachment – Lyft has been gradually picking up an edge over Uber alongside USD 1 Billion raised through CapitalG-Alphabet’s development speculation subsidize.
Lyft declared its first worldwide city to be Toronto.
New market potential for ride-hailing services in Canada
Lyft co-founder John Zimmer has cited 50,000 Lyft application downloads from torrotians as of now.
The surge seems to originate from the new bill proposed by the Green Sharing party to legalize ride-hailing services like Uber. Due to the potential impact, it would have had on the region’s current taxi industry, Vancouver was earlier reputed to be one of the last few regions to hold out against ridesharing services like Uber.
A middle ground was found where the Transportation Minister Claire Trevena said “If anyone wanted to start ride-sharing they could right now, so long as they followed existing rules”. The bill is expected to pass during the holiday season of December.
Apart from this, a recent report from Goldman Sachs stated that Ride-hailing industry is expected to grow eightfold to $285 billion by 2030.
With the new market gap for mobile transportation services in Canada, Lyft wasted no time to get a market slice of the new segment that Uber seemed to have been prevailing in earlier.
Lyft has already started to entice drivers by offering a 25% bonus on completion of 20 trips a week for the first 3000 drivers in the first 3 months of Lyft’s operation.
Since February, Lyft’s market share has increased from 21% to 25%. Some other firms have put Lyft’s share as high as 30%. While Uber’s market share has been dropping since 2015 from 95% to 75%.
With the addition of the new bill and the projected growth of the ride-hailing industry, it won’t be long before other investors and entrepreneurs start eyeing this region for ridesharing and mover apps for a piece of the market share. The market scope in Canada is big for this ride-hailing industry now and seems to be a fertile ground for Uber for X businesses & applications.
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