Uber has dominated the ride-hailing industry ever since the company was founded. It has expanded all over the world and is now worth roughly $70 billion. However, many ride-hailing companies have been created for the sole purpose of ending Uber’s dominance and getting a piece of the very lucrative industry. One of Uber’s biggest competitors in the United States has been Lyft. Uber has not had to worry about them internationally because Lyft has only operated in the United States. However, those days are officially over forever. Lyft has begun its first foray into the international market by opening for business in Toronto, Ontario, Canada. Toronto is the biggest city in Canada and only Mexico City, New York City and Los Angeles are bigger cities in North America.
Lyft has been having internal discussions about going the international route for quite some time. However, they wanted to wait to ensure they did not make any mistakes by moving too quickly. Toronto will be a good place for Lyft to get their international business started. It is true that Uber has been operating there for five years and has more than 32,000 drivers working in the city. However, there are nearly three million people in the Toronto metro area. This means that Toronto Lyft drivers will have no shortage of people who need reliable transportation.
The app that has been created by Lyft has been downloaded by 50,000 Torontonians in 2017. This makes the company very optimistic about their ability to compete with Uber in this very large city. Lyft is banking on the fact that people want as many options as possible when it comes to ride-hailing services. Many people are wondering how much Lyft will pay its drivers in Toronto. The company announced that drivers will get to keep 75 percent of the fare. This is roughly the same amount of money that Uber drivers make.
Lyft has a long way to go before it can topple Uber. However, investor confidence in Lyft is at an all-time high right now. The company was recently able to raise roughly $1 billion in a round of financing. This shows that venture capitalists believe all of the scandals surrounding Uber executives, their business practices and their drivers have decreased customer confidence in the ride-hailing giant. However, Uber is already operating in many other countries besides Canada. Lyft did not announce plans to do business in other international cities.