Lyft president and cofounder John Zimmer says the ridesharing service is on track to make $1 billion in annualized gross revenue by November 2016. Zimmer made the announcement at the Connected Car Expo in Los Angeles as part of a presentation on the future of the rideshare space.
The company, which in September entered into a partnership (including a reported $100 million cash infusion into Lyft) with China’s Didi Kuaidi, also says it now has 40% market share in the San Francisco Bay Area and 45% market share in Austin. Lyft has tripled its market share in New York over the past four months, Zimmer said.
However, Lyft has also been dipping into its profits to acquire those new customers. In order to reduce the gap between it and arch-rival Uber, Lyft has started an aggressive discount program to lure riders to its app. In Los Angeles, for instance, Lyft routinely offers half-price rides, and the discount Lyft Line service began offering $5 rides in New York. While he would not go into specifics about the impact on Lyft’s metrics, Zimmer told Fast Company in a phone call that “We do a lot on the marketing front.”
Zimmer also said that approximately 20% of Lyft’s rides begin and end at mass transit stops, and that he won’t teach his infant daughter to drive when she turns 16. By that time, Zimmer told Fast Company, he believes conventional car ownership won’t exist.
Update: An earlier version of this article stated Lyft expects to make $1 billion in annualized gross revenue by November 2017. The correct date is November 2016.