Lyft Competitors: Top 3 Companies in the On-Demand Ridesharing Industry

Posted in: competitor, Competitor analysis, flywheel, gett, gettaxi, hailo, lyft, ridesharing, Sector and Company Insights, sidecar, transportation, Uber

About Lyft

lyft-logoLyft is a peer-to-peer ridesharing company. Founded in 2012, the San Francisco-based company aims to connect people who need rides to drivers nearby. Lyft allows customers to hail a driver, set a route, pay, tip and rate their ride, all without leaving the app. It boasts a low-key, hipster vibe, and its ride options include the regular Lyft, Lyft Line (where riders are matched with other riders going the same way) and Lyft Plus (a six-passenger ride).

Lyft has raised over $1 billion in venture funding from investors like K9 Ventures, Alibaba, and Andreessen Horowitz, and is valued at $2.5 billion. According to the New York Times, the company is raising a $500 million round at a $4 billion valuation. However, its funding and valuation pale in comparison to the 800 pound gorilla in the ridesharing industry - Uber has raised over $9 billion and is valued at $50 billion and climbing. The Lyft executive team includes Logan Green, co-founder and CEO; Brian Roberts, CFO; Chris Lambert, CTO; and Travis VanderZanden, COO.

View and compare Lyft's competitors in DataFox's predictive intelligence tool

About the on-demand ridesharing industry

An outgrowth of the sharing economy, ridesharing apps connect people who need a ride with people who have a vehicle and time to drive - notably, not necessarily people who are licensed taxi drivers. Companies like Lyft, Gett and Uber provide a smartphone app that lets consumers hail a ride, set their destination, and pay without leaving the app itself. The benefit to the consumer is ease of use, availability of rides, and sometimes lower prices than traditional taxis.

Many companies require at least some sort of certification for the drivers, and take a cut of the drivers' fares. Drivers can choose when they work (though they can receive bonuses for logging a certain number of hours) and provide their own vehicles. In the U.S., ridesharing companies argue that the work-when-you-want arrangement qualifies drivers as contractors, not employees. Despite legal battles and controversy over surge pricing, ridesharing companies have exploded in popularity, both in the U.S. and internationally.

Early entrants in the transportation app space, like Uber and Flywheel, were founded around 2009; new companies have been cropping up since. Overall, the industry has raised more than in $10 billion in venture funding.

Top Lyft competitors in the on-demand ridesharing industry

Uber

uber-logo

  • Uber company profile
  • Founded: 2009
  • Location: San Francisco, CA
  • Status: Private, late-stage
  • Total funding: $9.01 billion
  • Top investors: Baidu, Benchmark, Goldman Sachs

Sidecar

sidecar-logo-2

  • Sidecar company profile
  • Founded: 2012
  • Location: San Francisco, CA
  • Status: Private, Series C
  • Total funding: $35 million
  • Top investors: Union Square Ventures, Avalon Ventures, Lightspeed Venture Partners, Google Ventures

Hailo

hailo-logo

  • Hailo company profile
  • Founded: 2011
  • Location: New York, NY
  • Status: Private, Series C
  • Total funding: $100.6 million
  • Top investors: Union Square Ventures, Accel Partners, Wellington Partners, Atomico Ventures

Lyft competitors in the news

Lyft (via The Next Web)

According to a blog post from the company, a new partnership with retirement benefits provider Honest Dollar will offer savings plans for as low as $1 per month for the first 10,000 drivers who sign up. Drivers will have the ability to start and stop contributions to the savings plan at their own discretion, and have the ability to transfer the money from the savings account back into their checking. For those who miss the promotional period, the savings plan will cost $3 per month. However, Honest Dollar will still waive the fee for the first two months of enrollment. It seems that it might not be limited to just Lyft: Honest Dollar says that they will begin to expand partnerships and offer the plan to more gig economy workers.

Uber (via arstechnica)

Ride-hailing app Uber has lost another round in its battle with some drivers who filed a class-action lawsuit against it. In August, US District Judge Edward Chen ruled that drivers should be allowed to form a class.
In Uber's view, only a small percentage of the 160,000 people who have driven for Uber in California will ultimately be eligible. If drivers win the O'Connor v. Uber case, then Uber may be required to reimburse things like gas and maintenance expenses.

Hailo (via VentureBeat)

E-taxi company Hailo has launched a new service that lets any taxi driver in London accept credit card payments with just their badge number. First introduced in Ireland last week, the new service isn't aimed at Hailo customers specifically - any traveler can use it to pay a Hailo-registered taxi driver. Hailo has been pushing hard to regain the love of taxi drivers in the U.K. capital after the company moved beyond traditional black-taxis and began offering private cabs too.

Ridesharing industry trends

See all funding information, trends and recent news in the on-demand ridesharing industry.

Cumulative financing

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Website traffic
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