1 of These Ride-Sharing Stocks Could Be Headed for Liftoff
The ride-sharing market is dominated by two major players: Uber Technologies (NYSE: UBER) and Lyft (NASDAQ: LYFT). At a high level, Uber and Lyft primarily compete within the same domain in that both companies offer consumers personal taxis at the click of a button. Given the similarities in their respective business models, Uber and Lyft are constantly competing for user acquisition. However, undercutting one another by offering riders lower fares is not a long-term sustainable solution.
Over the last couple of years, Uber in particular has made a number of strategic investments. The company's last two earnings reports illustrate that these moves are beginning to pay off. Wall Street has taken notice too, and major investors have expressed bullish sentiment on Uber stock. Let's examine what Uber is doing to differentiate itself from Lyft, and why the company may be a good addition to your portfolio.
The majority of people on Uber or Lyft use the platforms for the same reason: being picked up at one location and dropped off at another, with the added benefits of speed, comfort, and convenience. But while Lyft primarily operates as a ride-hailing application, Uber is offering consumers more choice.
Source Fool.com
