Uber and Lyft, despite being tech companies, have a financial performance that differs significantly from traditional taxi services. Both companies have been battling for market share, resulting in significant spending on driver subsidies and promotional discounts for riders. This strategy has led to both companies burning through a lot of cash. Uber, for instance, has reportedly spent over $11 billion since its inception. However, Uber announced for the first time in its history that it will be cash-flow positive for the full year of 2022. While it's normal for tech companies to operate at a loss for extended periods, Uber has done so for longer than others.
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Despite Uber's larger size, Uber only has twice the cash as Lyft. Lyft's market share has doubled since 2015 from 15% to 31%. As both companies battle it out for market share, they've had to spend on driver subsidies and promotional discounts for riders. It's a strategy that has caused both companies to burn through a lot of cash—Uber has reportedly spent over $11 billion since its founding. But this year, for the first time in its history, Uber announced it will be cash-flow positive for the full 2022. While it has become normal to make a loss for extended periods in the tech sector, Uber did so for longer than others.