Uber gets serious competition: Lyft expands service outside of the United States

America’s transportation company Lyft yesterday launched its service in Toronto, which is the first case of expanding this Uber competition outside the United States.

Lyft is being promoted as a more socially fairer version of the much larger and more popular Uber, which is being investigated by governments around the world for suspicion of concealing massive hacking of users data last year.

Hackers then stole 57 million names, email addresses and cell phone numbers from the database, including 600,000 drivers, and Uber tried to hide the data leak.

“This is a monumental day for Lyft. Passengers want a second option and drivers know that Lyft is built on caring for their driving community and they want that experience, “said Toronto general manager, Tim Haughton.

Haughton added that more than 50,000 people in the largest Canadian city dropped the Lyft application, but refused to specify how many drivers applied, pointing out only that there were more than 100.

Uber, on the other hand, has 32,000 drivers in Toronto who did at least four rides last month. It is obvious that Lyft has a long way to go if he wants to reach this pioneer of cargo services through mobile applications as well as taxi services.

Nevertheless, Lyft has had an impressive growth of business this time – as TechCrunch reports, doubling the number of driving and last 100 million rides in just three months, while the first 100 million rides were four years. Likewise, it currently offers service to as many as 95% of the US population, as opposed to 76% a year ago.

With that in mind, it is difficult for Lyft to think of spreading to Toronto. Perhaps their service for which year becomes available to us.

Uber ordered 24,000 vehicles from Volvo

The company has great confidence in its self – timing system and is preparing for the new phase of its business in which the transport service will be provided without drivers.

Uber may be in trouble with the laws of many countries, so some have predicted the company’s failure when considering financial results, but how important is it really? If it is not yet clear to anyone that in the long run this company does not intend to be a taxi or taxi service agent, the new Uber move should convince him. Uber has, in fact, ordered 24,000 Volvo Hybrid XC90 T8 vehicles, which will serve as a platform for self-propelled passenger cars. The vehicles will buy and equip their autonomous driving system between 2019 and 2021.

This figure of 24,000 vehicles can go up and down, depending on the need or demand. The price of the hybrid XC90 in retail is about $ 70,000, with Volvo adding additional sensors and radar according to Uber’s specification before delivery. Various analysts give different estimates of deals between Uber and Volvo, so some mention $ 1.4 billion, while others estimate $ 1.9 billion and more.

So a large number of ordered vehicles is particularly significant for Uber when it is known that potential future competitors from Waymoo (companies separated from Alphabets) currently have a partnership with Fiat Chrysler for only 600 vehicles.

Although this is not the first Uber’s purchase of a fleet of vehicles, it is by far the largest and proves that the company’s development project, which was specific to the fact that it has so far claimed that it does not deal with the classic taxi service, but by organizing a short-term rental vehicle in the direction of complete automation of this process. First through winning the market at more affordable prices and a more practical business model, preparing for the phase of carriage of passengers without a human driver.

It is to be expected that initially for Uber’s self-propelled vehicles will sit with blood and car drivers who will make sure that the vehicles do not make driving mistakes that could lead to fatal consequences, but autonomous driving systems will at times become sufficiently certain that the steering wheel nobody is to be seated, so the taxi driver, whether classical, or Uber’s “taxi driver, who is not a taxi driver”, becomes a relic.

Uber redeemed more and more: In the third quarter the loss of $ 1.46 billion

As a private company, Uber is not required to publish financial reports publicly, but earlier this year it began to provide insight into its financial performance by revealing certain data.

The US technology company Uber recorded an increase in quarterly loss, while this brokerage company faces legal problems and regulatory constraints around the world.

The Silicon Valley-based company recorded a net loss of $ 1.46 billion in the third quarter, compared with $ 1.06 billion in quarterly loss earlier, Reuters said the source familiar with the situation. Quarterly net revenues jumped 14 percent to $ 2 billion, while gross revenue from orders rose 11.5 percent to $ 9.7 billion, according to sources. As a private company, Uber is not required to publish financial reports publicly, but earlier this year it began to provide insight into its financial performance by revealing certain data. On Tuesday, a consortium led by Japanese corporation Softbank announced a bid to buy Uber shares. The Japanese company said some respectable investors in Uber, including Benchmark, owning 13 percent of Uber’s $ 9 billion worth of stocks, and Menlo, are planning to sell their shares. Uber faced numerous scandals this year, and lastly concerns regulatory issues due to the discovery that the company paid hackers $ 100,000 to cover up a major hacker attack last year, to which 57 million users were exposed worldwide.

The Japanese corporation offered a 30 percent lower price for Uber shares

The JAPAN corporation Softbank offered to buy Uber shares 30 percent lower than the estimated value of that $ 68.5 billion company, reports Reuters from a person familiar with the case.

The investment, which was approved by the Board of Uber in October, would also trigger a number of changes in the management of this technology company for brokerage services. Among other things, the former power of individual shareholders in the decision-making process would be limited, the board of directors would expand from 11 to 17 members, and the influence of former executive director Travis Kalanicka would also be minorized.

They plan to take at least 14 percent of the company

Investments and moves by the board of directors are also backed by the new CEO Dara Khosrowshahi, coming to the end of the year marked by scandals and changes in the company, including the past acknowledgment that at the end of last year were hacked data by 57 million Uber service users, .

The investor consortium, led by Softbank and the Dragoneer investment fund, plans to take a stake of at least 14 percent in Uber. The buyout will be announced today, reports Reuters from sources, and investors will have about a month to respond.

Softbank would get two seats in the board of directors

The group of investors led by Softbank would get two new seats in the new board of directors, while the remaining four would belong to independent directors.

In the event that the interested sellers are not enough, Softbank can still give up work. The Japanese company also plans to invest $ 1 billion in the company at an estimated market value of $ 68.5 billion.

Estimated the value of the company at $ 48 billion

Even at a reduced price, Uber is the second-largest private company-funded company in the transport services sector, following the Chinese Didi Chuxing platform, and is a chance for early investors to secure significant profits, and for employees to monetize stocks that have so far had value only on paper.

According to Softbanka’s offer, Uber is worth about $ 48 billion, and not $ 68.5 billion, as shown in the previous year’s estimate.

Since more than a year ago, the market value of the company was estimated at $ 68.5 billion Uber faced numerous scandals, including allegations of sexual harassment. Also, he was found guilty of software scams for regulatory fraud and bribery of government officials in Asia, while Alphabet’s Department of Self-Employed Cars Waymo was sued by Uber for stealing business secrets.

Uber is developing with NASA flying taxis, the first test run starts in three years

UBER in cooperation with NASA participates in the joint venture of the public and private sector to develop software that this company will use to manage “flying taxi” routes that could function as services that the service already provides on the ground.

Uber said on Wednesday that it was the first official contract signed by NASA, covering low-flying flights, not those outside the atmosphere. NASA uses such contracts to develop rockets since the late 50s of the last century.

Uber’s Product Development Manager Jeff Holden said that Uber 2020 in Los Angeles will begin testing fleet taxis for four people who will move around 322 kilometers per hour, which will be another test market after Dallas and the nearby Fort City Worth.

Uber around the world has been besieging laws and regulations since launching his taxi application at the beginning of this decade, including London, where he complains against the decision to seize the license for security reasons.

Holden presented the latest Uber plans for flying taxis at the Web Summit, the internet conference in Lisbon, pointing out that they are working on obtaining approval from air regulators before launching such services.

“The reality is that Uber has grown very much like a company,” Holden said in conversation ahead of his speech.

“We are now a big company on the world stage, and you can not do the same thing when you’re a widespread, global company like when you’re a small, skewed startup,” he added.

NASA has announced that it signed an Uber agreement in January, which enables this company to join a number of industrial partners working with NASA to develop various non-driver flying systems.

Uber is trying to speed up the development of a new industry of electric city fleets on demand, said Holden. Clients will be able to order transportation over smart phones the same way they are already on the ground in more than 600 cities around the world.

The introduction of long-distance flying taxis is planned until 2023.