Many tech companies have used a variety of strategies to become cash-flow positive. Some of these strategies include focusing on growth and market share, investing in research and development, and optimizing operational efficiency. For instance, companies like Uber and Lyft have focused on expanding their market share by spending on driver subsidies and promotional discounts for riders. This strategy, however, has led to significant cash burn. Other companies have focused on developing innovative products and services that can generate substantial revenue. Additionally, some companies have worked to improve their operational efficiency to reduce costs and increase profitability. It's important to note that these strategies can vary depending on the specific circumstances and goals of each company.
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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.