While Uber and Lyft have been dominating the ridesharing industry and revolutionizing urban mobility, they’re likely to meet a new top competitor in Tesla.
The company has had its own ridesharing app in the works for some time. Uber and Lyft are at a disadvantage, as neither of them has made a profit.
Much of this has been attributed to how they’ve relied heavily on venture capital and IPO filings to stay afloat which has put them in a bind.
A loss of $1 billion like Uber took in 2019 will take its toll.Uber’s profit margins have been a point of increasing concern for investors. The company collects fares from each ride to pay off its revenue and operating costs, but the amount it earns doesn’t even cover that expense.
Therefore, Uber has continued to lose money every quarter since their IPO in 2017. The debate over whether the Transportation Network Companies (TNC) will remain unprofitable or could be a booming new industry of the future continues.
A new competitor with something greater to offer entering the picture could change all of that. This has led many to keep their eyes on Tesla to see how it performs because of its advancements. While talk of an autonomous driving network is on the horizon, Tesla is set to launch their ridesharing app with drivers.
Because of this, the company will be able to utilize one of its latest services — a car insurance program. Drivers for the Tesla network will be covered directly through the company.
It is believed that a human-driven ridesharing app will give Tesla multiple advantages over the competition, especially when it comes to financial and insurance efficiency.Continue reading… “Tesla to launch ridesharing app, with Tesla’s Driver Insurance”