This post was originally published on this site
Price targets for two ride-sharing companies were cut following an in-depth look at the driver supply market. Erickson is less positive on UBER from our proprietary driver supply analysis vs. LYFT.
Our analysis indicates that the inputs of UBER share gains vs. LYFT that we found in our Oct. 14 analysis have likely abated while driver supply has arguably worsened for both players and could portend rising driver incentive expense pressure, the analyst said in a client note.
More precisely, pick-up times appear to be over 50% higher compared to the October analysis, with LYFT still demonstrating shorter wait times.
Our work indicates that the inputs of LYFT share loss that we found in our Oct. 14 analysis have likely abated while, negatively, driver supply has arguably worsened for both players and could portend rising driver incentive expense pressure, Erickson added.
By Senad Karaahmetovic
