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

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.

No subscription? You're missing out.

Join the high-powered community of tech and business leaders who rely on The Information's original news and in-depth reporting.

And having already dipped its toes in on-demand electric bikes in San Francisco, Uber undoubtedly will go further in offering such short-distance options to its customers.

4 total comments
Raghu Gullapalli, Sami Paihonen and 2 others commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
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.