Have Uber and Lyft Finally Found a Way to Make Ride-Sharing Profitable?

Uber and Lyft, two long-time money-losing ride-share companies, have surprised analysts by moving towards steady profits. In 2023, Uber became profitable as a public company, and Lyft projected that it would become cash-flow positive for the first time this year. Both companies have shifted their focus to profitable growth and cost discipline, making painful cuts and abandoning expensive projects. Investors are hopeful that this new approach will lead to an end or de-escalation of deep discounts and price wars. The companies have also gained a cost advantage by not owning cars or employing drivers, and they have won key regulatory battles. Other gig-economy counterparts, such as Instacart and DoorDash, are also showing signs of maturing. [Extracted from the article]