Lyft is the second-largest ride-hailing company in the United States, yet, no one wants to buy it. A recent report claims that Lyft has been searching for a buyer over the past few months. Yet, some sources state that Lyft is not profitable. The company has allegedly approached Didi Chuxing, Amazon, Apple, Google, Uber and General Motors.
Although, the company isn’t shutting down–it has a cash cushion of $1.4 billion. It will probably continue serving customers. The reason the company wants a buyer might be due to the fact that it is difficult to make a profit in the ride-hailing industry. The New York Times states:
Companies like Lyft and Uber typically take 20 percent to 25 percent of the cost of each ride. With Lyft drivers expected to pick up an estimated $2 billion or so in fares this year, that meant Lyft’s annual revenue would be about $400 million, according to a person familiar with the company’s financials.
Then, there are the costs of marketing and overhead–which is also around $400 million. In addition, the company provides cash incentives for drivers to pick up customers. It remains to be seen if, and when, a buyer will surface.