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Lyft (LYFT) shares are under pressure after the rideshare company posted quarterly results amid pricing pressure from Uber (UBER). Lyft CEO David Risher joins Market Domination with Julie Hyman and Josh Lipton to discuss the earnings results and explain how Lyft is approaching competition with other rideshare companies.
"We just posted the best results of our history," Risher says, explaining that the stock reaction is a response to "some changing in pricing right at the end of last quarter," which he says "always gets people a little bit kind of freaked."
"If somebody else in your marketplace starts to play around with pricing, you've got to deal with it, and that's fine," the CEO says, adding, "There's plenty of demand out there, which is great for the market. We don't really see a need to play with prices much, but if it happens, we respond ... competitively and reliably."
When asked about Uber's rivaling price lock feature, Risher says he's "not worried," highlighting, "We pick people up on average a minute faster than a year ago and 30 seconds faster than the other guy. So, if that's happening and we're seeing our market share increase year after year after year, then if you're them, what do you do? Well, maybe you drop prices — maybe you start copying other people's features."
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This post was written by Naomi Buchanan.