Several factors contributed to Lyft's market share doubling since 2015. One of the main factors was the company's strategy of spending on driver subsidies and promotional discounts for riders. This strategy, although it led to a significant cash burn, helped Lyft attract more users and increase its market share. Despite Uber's larger size and twice the cash, Lyft managed to double its market share from 15% to 31%.
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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.