The Dark Side of Ridesharing's Rationalization
If you listen in on any recent earnings calls for Uber (NYSE: UBER) or Lyft (NASDAQ: LYFT), you will inevitably notice a recurring theme: market rationalization.
"We are continuously optimizing our platform for growth and leverage, while also benefiting from an increasingly rational market," Lyft CFO Brian Roberts said last month. "This is resulting in reduced incentive spending and lower sales and marketing expenses overall." Just this week, Uber CEO Dara Khosrowshahi acknowledged, "We're not counting on rationalization near term in Q4, but we do think that all of these markets need to rationalize."
Image source: Lyft.
Source Fool.com
