Uber Scandals Could Open Door for Lyft

posted by iHeartMedia's Nik Rajkovic - 

More trouble for Uber, the feds are now investigating whether the ride-hailing company stole self-driving car technology from a Google spinoff.

The investigation comes amid a leadership change at Uber which reported a third quarter loss of $1.5 billion on the heels of a massive cyberattack.

“It seems like every day there is a new scandal that we’re reading about with Uber and I think people’s patience is running low right now," says Dr. Scott Sonenshein, Henry Gardiner Symonds professor of management at Rice University.

Sonenshein says Uber could ultimately collapse under its own creation.

“Lyft would be the major competition to Uber, some cities have alternative providers but those tend to be much smaller and not of the national or even international scale of Uber or Lyft,” he says.

Even if Uber survives the scandals, the company still has to find a way to make money.

“Prices is helping Uber right now overcome some of this turmoil that they’re having, but at the same time that low price is coming at a cost and the company is bleeding cash and losing billions and billions of dollars each quarter,” says Sonenshein.

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