The ride-sharing app Uber is now a bigger player in the ridesharing business than Lyft and is expected to surpass the popular car-hailing service in the United States by the end of the year, according to a recent report from market research firm CB Insights.
Uber’s growth has been fueled in part by its ability to offer a competitive price and lower fares, and it is now valued at $37 billion.
Lyft, the popular private-hire car service that is owned by Google and has been the target of regulators and lawmakers, is valued at just $6.3 billion.
The ride-haring service has had a major impact on the lives of drivers, who have seen their income rise by more than a third since Uber took over.
But as Uber continues to gain traction in the marketplace, it is becoming increasingly clear that Lyft’s rideshare model is better for drivers than Uber’s.
The rideshare company has seen the market shift away from its traditional taxi business model and is now trying to convince drivers that it can offer a cheaper ride to people who are willing to fork over more cash.
Lyft and Uber have been working together on an expansion plan to add more drivers to its fleet.
In a letter sent to the CEOs of Lyft and Lyft competitor Uber, Lyft CEO Logan Green wrote that Uber’s expansion plans “will allow us to expand our workforce and grow our business to a larger market.”
The letter, dated July 25, is part of an internal memo shared with Bloomberg by a source who is familiar with the company’s internal discussions.
Lyft is also looking to increase its driver pool in order to make its service more attractive to drivers, according the source, who asked not to be identified.
Lyft has been working with the FBI to expand its law enforcement operations in the region, and Green is reportedly working with a former police officer to help develop an app that would let drivers use a mobile phone to hail and pay for rides.
Green said the app would help reduce the amount of time drivers had to wait for a ride.
“We are working with law enforcement to make sure our drivers have the best ride experience possible,” Green wrote in the letter.
“I’m excited to share our plans to improve the ride experience for everyone in the ride-share industry.
We are excited to work with Lyft to make the ride sharing business better for all drivers.”
Green said Lyft is looking to partner with the Federal Trade Commission to develop new ways to improve driver experience, but that the company would not be making any changes to its service in response to any specific legal action.
“Logan and I will not be changing our services to meet the regulatory requirements in any way,” Lyft said in a statement to Bloomberg.
Lyft declined to comment.
Green also wrote that Lyft and Green have worked on developing a “mobile app” that would help Uber drivers pay for their rides, which would be part of the ride app’s revenue model.
Lyft has struggled to attract drivers since it launched its service last year.
The company was shut down for nearly two years after being accused of using its platform to lure people to its app and then resell their cars.
Uber has been able to grow its drivers in large part because its competitors, such as Lyft, have been able offer low fares.
The Uber and Lyft teams are still working out how they plan to compete, but Green said he expects to see “significant growth” in the company in the coming years.
Lyft’s ride-shares have already grown from just a few hundred drivers a year ago to more than 1,000 by the start of the month.