The Taxi and Ride-sharing Market (Taxi, Uber, Lyft) in Los Angeles "Uber and Lyft have devastated L.A.'s taxi industry," (LATimes). Over the past couple of years Los Angeles has faced a big change in transportation available to the public. And companies like Lyft and Uber have been leading the charge to change the way the people of Los Angeles get around the city. Before the introduction of these companies if someone needed to get around LA they would take a cab, but now they have more options. But since the emergence of Uber and other companies that other the same services of taxis, the market has shifted from being dominated by the taxicab, to being shared among multiple suppliers, with the main suppliers being the Taxi, Uber, and
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The main difference between the two companies is popularity, and Uber is far more popular than Lyft. This is one of the advantages that Uber has over Lyft as they were introduced in Los Angeles in March of 2012 which is one year earlier than when Lyft was introduced in Los Angeles in January of 2013. And since Uber launched in San Francisco in 2009 it had already been heard of throughout the world, and it had been three years since the company went public that it finally entered the LA market. Lyft on the other hand was a relatively new company and was living in Uber’s shadow. It was launched in June of 2012 in San Francisco, so they only had one year to try and show the rest of the US what they had to offer, and only had one year to grow their company before they came to LA. Uber has even become so popular that artists are creating songs about the service like Trill Sammy’s big hit “Uber …show more content…
All of the three have an elastic demand because they are all substitutes of one another, and elastic demand is where if there is an increase in price even it’s very small the quantity demanded will decrease a lot. The only differences is how steep the demand curve is because Uber will have the steepest curve because it is the most popular and has the most market share so the loyal customers who are comfortable and used to Uber will stay. Lyft would be the second steepest because although it isn’t as popular as Uber and if the prices increase than some of their customers will switch to Uber. And the Taxi industry is the most elastic because the industry is falling apart and it is already more expensive than Uber and Lyft so if they raise the prices of the Taxi then many people will stop taking Taxi’s and take Uber or Lyft. Another difference between the demand and supply curves is where they are positioned on the graph. Uber will have a much higher quantity demanded than Lyft and the Taxi companies, and this has continued to shift right because of the increased popularity and increased growth of Uber, and also a higher quantity supplied because of the increase in drivers wanting to join the company. Lyft will be after Uber, and also shift right, but not as much as Uber because of the increased popularity
The main difference between the two companies is popularity, and Uber is far more popular than Lyft. This is one of the advantages that Uber has over Lyft as they were introduced in Los Angeles in March of 2012 which is one year earlier than when Lyft was introduced in Los Angeles in January of 2013. And since Uber launched in San Francisco in 2009 it had already been heard of throughout the world, and it had been three years since the company went public that it finally entered the LA market. Lyft on the other hand was a relatively new company and was living in Uber’s shadow. It was launched in June of 2012 in San Francisco, so they only had one year to try and show the rest of the US what they had to offer, and only had one year to grow their company before they came to LA. Uber has even become so popular that artists are creating songs about the service like Trill Sammy’s big hit “Uber …show more content…
All of the three have an elastic demand because they are all substitutes of one another, and elastic demand is where if there is an increase in price even it’s very small the quantity demanded will decrease a lot. The only differences is how steep the demand curve is because Uber will have the steepest curve because it is the most popular and has the most market share so the loyal customers who are comfortable and used to Uber will stay. Lyft would be the second steepest because although it isn’t as popular as Uber and if the prices increase than some of their customers will switch to Uber. And the Taxi industry is the most elastic because the industry is falling apart and it is already more expensive than Uber and Lyft so if they raise the prices of the Taxi then many people will stop taking Taxi’s and take Uber or Lyft. Another difference between the demand and supply curves is where they are positioned on the graph. Uber will have a much higher quantity demanded than Lyft and the Taxi companies, and this has continued to shift right because of the increased popularity and increased growth of Uber, and also a higher quantity supplied because of the increase in drivers wanting to join the company. Lyft will be after Uber, and also shift right, but not as much as Uber because of the increased popularity