The potential implications of Lyft doubling its market share since 2015 could include increased competition with Uber, leading to more spending on driver subsidies and promotional discounts for riders. This could result in both companies burning through more cash. However, it could also lead to Lyft gaining a stronger foothold in the market, potentially leading to increased profitability in the long run.
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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.