Lyft looking to raise $500M in new funding at valuation of about $4B
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Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#2"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction."
Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#3"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction." Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
Misleading in what way? It's gross revenue, not profit.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#4"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction." Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
Misleading in what way? It's gross revenue, not profit.
Indeed, but when the net is 20% of that it feels pretty misleading (at least to me). "Cut of money the drivers take" being 80%? The wording feels very off
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#5"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction." Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
Misleading in what way? It's gross revenue, not profit.
Some would argue that "gross revenue" should only include the amount that Lyft gets paid, not the amount that they hold in escrow for their drivers.
This is more a question of semantics than anything else.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#6Earlier quoted context omitted.
Misleading in what way? It's gross revenue, not profit.
Indeed, but when the net is 20% of that it feels pretty misleading (at least to me). "Cut of money the drivers take" being 80%? The wording feels very off
Isn't Amazon's profit margins on sales something like 5% or worse? This doesn't seem any more disingenuous than most other businesses.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#7Ah, Uber took money from Google Ventures, that's why Uber is listed as an option in my Google Maps app.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#8"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction." Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
It doesn't sound particularly misleading to me. That's just what "gross" means. Gross is always way, way higher than net. You wouldn't subtract the wholesale cost from the gross income of a retail chain, you wouldn't subtract employee wages from the gross income of a software firm, and you wouldn't subtract contractor payments from Lyft.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#9Ah, Uber took money from Google Ventures, that's why Uber is listed as an option in my Google Maps app.
According to the folks in charge is unrelated.
Re: Lyft looking to raise $500M in new funding at valuation of about $4B
#10"At the Robin Hood Investors Conference in New York on Tuesday, Lyft said it expected to generate about $1 billion in annualized gross revenue next year, a figure that does not account for the cut of money the drivers take from each transaction." Maybe I'm missing something, but isn't the driver's "cut" like 80%+? This seems pretty misleading
It doesn't sound particularly misleading to me. That's just what "gross" means. Gross is always way, way higher than net. You wouldn't subtract the wholesale cost from the gross income of a retail chain, you wouldn't subtract employee wages from the gross income of a software firm, and you wouldn't subtract contractor payments from Lyft.
That's not quite true. You normally wouldn't refer to Lyft's total proceeds as "revenue", gross or otherwise. Retail stores hold inventory which runs the risk of going unsold. Not true of Lyft. Ebay calls it "gross merchandise sales". PayPal calls it "total payment volume". Google subtracts "TAC" out of its network revenue. Etc. I've seen Uber refer to it as "gross bookings".