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Uber and Lyft could consider several strategies to reduce their spending. Firstly, they could reduce driver subsidies and promotional discounts for riders, which have been major contributors to their cash burn. Secondly, they could invest in technology to improve operational efficiency and reduce costs. Thirdly, they could explore partnerships with other businesses to share costs. Lastly, they could consider diversifying their revenue streams to reduce reliance on ride-hailing.
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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.
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