U.S. ride-hailing firm Lyft Inc on Tuesday launched its service in Toronto, the first international market for the rival of much larger Uber Technologies Inc .
Lyft is moving outside the United States as Uber faces investigations by governments around the world over its cover up of a massive 2016 data breach.
‘Canada, there’s a new ride in town — Lyft is now live across the GTA!’ the firm said.
Ride-hailing firm Lyft Inc said on Monday it would launch its service in Toronto, marking the first international expansion for the U.S.-based rival of Uber Technologies Inc. A stock image is pictured
‘Wherever you’re headed, we believe it matters how you get there.
‘So, from Queen St. downtown, up north in Newmarket, and all the way from Burlington to Bowmanville, if you’re in the Greater Toronto Area — we’ve got your ride.’
Lyft raised $1 billion in October, in a financing round led by CapitalG, the growth investment fund of Alphabet Inc and in September hired an initial public offering advisory firm.
Ride-hailing firm Lyft Inc said earlier this month it would launch its service in Toronto, marking the first international expansion for the U.S.-based rival of Uber Technologies Inc.
‘Before you know it, Lyft will be coming to you live in Toronto,’ the company said in a blogpost, without giving a launch date.
Lyft is crossing into Canada at a time when rival Uber has opted out of operating in Quebec, Canada’s second-most populous province, to avoid following tough new regulations for drivers.
While the firm hasn’t revealed exactly when the service will hit the streets of Toronto, the blog post says ‘Lyft will be around to help ring in the holidays.’
Lyft raised $1 billion in October, in a financing round led by CapitalG, the growth investment fund of Alphabet Inc and had in September hired an initial public offering advisory firm.
Last week, Lyft’s rival Uber revealed competition between the two firms is driving losses in the US.
According to Chief Executive Dara Khosrowshahi, the ride-sharing firm will continue to lose money in its home market for at least the next six months.
Where Lyft will go: This is the firm’s coverage area for its first international service
The claims came during Khosrowshahi’s first public comments since taking the top job at Uber two months ago.
‘The U.S. is very, very competitive right now between us and Lyft, so I don’t see the U.S. as being a particularly profitable market for the next six months,’ said Khosrowshahi, who made the comments at the New York Times DealBook conference in New York, which was also streamed online.
A spokesman confirmed that Uber will be unprofitable overall, although some cities may break even.
Khosrowshahi was tapped to run Uber in August after leading travel-booking site Expedia Inc for 12 years and is expected to bring a less abrasive approach than his predecessor, Travis Kalanick.
On Thursday, he described progress in talks with regulators in London, who in September refused to renew Uber’s operating license.Last week, Lyft’s rival Uber revealed competition between the two firms is driving losses in the US.
Lyft is crossing into Canada at a time when rival Uber has opted out of operating in Quebec, Canada’s second-most populous province, to avoid following tough new regulations for drivers. Stock image
Uber has often said its heavy losses were necessary to establish itself in new markets.
But the lack of profits in its home market, where it has been operating for eight years, and others such as Southeast Asia, raise questions about the company’s business model, which relies on heavily subsidizing both riders and drivers to keep prices low using the billions of dollars in venture capital the company has raised.
Khosrowshahi’s comments are also a testament to Lyft’s growth.
The smaller ride service, which started in 2012 and only operates in the United States, has expanded to more than 350 cities across 41 states this year and last month raised $1 billion in a financing round led by Alphabet Inc.
Last week, Lyft’s rival Uber revealed competition between the two firms is driving losses in the US. Dara Khosrowshahi made the comments at the New York Times DealBook conference in New York
For a brief period last year, Uber was profitable in the United States and Canada, the company said.
Khosrowshahi outlined the challenges in Southeast Asia, where Uber has had to spend heavily to compete with local ride services Ola and Grab.
‘The economics of that market are not what we want them to be,’ Khosrowshahi said. ‘I think it’s over-capitalized at this point.
‘We’re going in, and we’re leaning forward.
‘But I’m not optimistic that that market is going to be profitable any time soon.’
But he dismissed the prospect of further consolidation similar to the merger deals Uber struck with competitors in China and Russia. In Britain and Brazil, prospects are brightening.