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Uber

Lyft may be awesome, but is its business?

Lyft may be awesome, but is its business?

Now that domestic ride-hailing service Lyft has made its market debut amid massive hype, it’s a good time to take a step back and look at the company’s — and its stock’s — so-called “potentialities.”

As users of Lyft, as well as its larger competitor Uber, which is expected to soon follow it onto the public markets, we can attest that the service is awesome. But that doesn’t mean that the business is awesome.

Both apps have been downloaded more than 100 million times, and the two companies have provided billions of rides and generated tens of billions in revenue. Most investors have used a ride-hailing app and understand the basic logic of the business model: We signal our...

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