Sign up to receive 5 free days of our daily summary for tech news.

Special Offer: Try out The Information today for only $10/month for your first 3 months. 
Autonomous Vehicles Uber/Lyft

Uber, Lyft Face Growth Ceiling

Several executives and key investors of Uber and Lyft estimate that annual revenue the companies generate in the U.S. from their core ride-hailing business will at most grow sixfold in the coming years before leveling off. That’s a much slower growth trajectory than what they were predicting a year or two ago, and it could translate into lower valuations from institutional investors when the companies go public, expected next year.

Previously, leaders at Uber projected internally that ride-hailing in the U.S. could be a $1 trillion market in terms of gross revenue, or 40 times what it is today. But difficulty in recruiting and retaining drivers in the U.S., the most lucrative market for ride-hailing, has prompted some of these people to ratchet back growth expectations. They now feel that until autonomous vehicles eliminate the need for some human drivers, Uber and Lyft won’t be positioned to make the kind of revenue gains they once thought were possible.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Venture Capital Uber/Lyft

What the Uber IPO Did and Didn’t Teach Us

By Jessica E. Lessin

Uber/Lyft

Uber Chairman Warns Directors of Duties as Kalanick Hires Uber Staff

By Amir Efrati

Uber/Lyft

Food Delivery, Foreign Markets Weigh on Uber Results

By Amir Efrati

Startups Markets E-commerce

Postmates Ad Spending Surges Ahead of IPO

By Priya Anand

The U.S. is one of the least expensive countries in the world in which to own a car, making it hard to persuade consumers to give up driving.