A fare war between Uber and Lyft has led to billions of dollars in losses for both ride-hailing companies as they fight for passengers and drivers.
But in one way it has been good for investors who snatched up the newly public companies' stock: The losses have scared off the competition, giving the leaders a duopoly in almost every American city.
It's likely to remain that way until any of dozens of companies trying to create self-driving cars refines their technology so they can launch a network of robotic taxis that removes human drivers from the equation. That breakthrough could enable them to slash their fares below the prices currently being charged by Uber and Lyft.
But most experts believe it will still be many more years before self-driving car technology reaches the point that it can support a large fleet of robotaxis. On the floor of the New York Stock Exchange Friday, Uber CEO Dara Khosrowshahi hinted that it will be three to five years before the company pivots to a focus on profit. That timetable hasn't been well received on Wall Street so far. Lyft's stock has fallen 29% below its IPO price of six weeks ago, and Uber flopped in its stock market debut Friday as its shares slipped by almost 8% percent.
Take Austin, Texas, for instance. In 2016, Uber and Lyft pulled out of the city after voters approved regulations on ride-hailing companies, including fingerprint background checks for drivers. Four competitors stepped in to give rides in tech-savvy Austin, including two local companies. But the following year, Texas legislators passed a looser state law that superseded Austin's, and Uber and Lyft came back.
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