Just ask the folks running ride-hailing outfit Lyft (NASDAQ: LYFT). Although its customers love Lyft's service and the company still has some hopeful shareholders, Lyft's balance sheet remains in the red, with no end in sight. It's not too soon for investors to start asking tougher questions about the viability and longevity of its business model, particularly as long as much-bigger rival Uber Technologies (NYSE: UBER) remains in the picture.
Anti-fraud office opens inquiry into allegations against Neelie Kroes after alleged breach of ethics rules
Back in 2018, Uber Technologies (NYSE: UBER) sold its Southeast Asian business to Grab Holdings (NASDAQ: GRAB), a start-up that bundled various transportation, food delivery, and payment services together into a single "super app." In exchange, Uber received a 27.5% stake in Grab. Grab subsequently conquered about three-quarters of Southeast Asia's ride-hailing market, according to Blackbox Research, and it went public last December by merging with a special purpose acquisition company (SPAC).