The No. 2 rideshare app, Lyft is looking for ways to stay competitive with Uber, the No. 1 rideshare. Uber has its own advertising network, and began offering ad placements on its core app last year; Uber Eats has offered the same capability since 2019. In June, Uber announced that video ads would be enabled on its core app, Uber Eats and alcohol delivery platform Drizly, which it acquired in 2021. Uber also has an ongoing partnership with Rokt.
Lyft has had a substantially tougher go-round than Uber since pandemic restrictions let up. The app’s share of rides dipped to 26% of the overall market, down from 38% in 2020, before climbing back to 30% as of July, according to YipitData metrics. Uber now commands a 70% market share, down from a high of 74% a few months ago and up from 62% in 2020. The No. 1 app has made strides in developing other areas of its business, namely, delivery services.
As a result of headwinds, Lyft laid off 1,072 employees in April, or about 26% of its overall workforce. The app is also reportedly exploring a sale of Citi Bike, a short-term bike rental service that operates in New York City.