Blog - Oh Beer, We Need a Lyft

Oh Beer, We Need a Lyft

Aug 14, 2019

Uber VS Lyft

Uber Inc. (UBER) and Lyft Co. (LYFT) each announced earnings this past week, and well, neither of them are winning the battle. Both companies recorded huge losses, Uber lost $5.2 billion, while Lyft came in with a loss of $644 million. Also, Uber’s revenue was significantly lower than expected, while Lyft’s was higher than expected. One advantage Uber has on Lyft is that outside of ride-hailing, Uber offers other services (Uber Eats). However, Uber has had little competition on this front, but companies are starting to come knocking. Just as Lyft pressured Uber in rides, Just Eat, Dominos, and Deliveroo plan to do the same in food delivery. Uber will have to get creative to stay ahead of the competition. If we had to pick, Lyft seems to be winning the ride-hailing battle.

Oh, Beer

As drinking beer becomes less popular, beer companies are left scrambling to adapt to the next craze - Hard Seltzer. Beer has now dropped below 50% of all alcohol consumed in the U.S. and companies like Boston Beer Co. (SAM) are feeling the need to adapt. Only about 25% of the company's production is actually beer, instead, they have turned to Hard Seltzer. The Boston Beer Co. is not the only beer company to be shifting away from beer. Anheuser-Busch InBev (BUD) is investing in non-beer options, while Constellation Brands (STZ)(owns Corona) is more focussed on hard alcohol, and CBD-Infused beverages. The shift to gluten-free, hard anything but beer is becoming an increasingly common trend in the industry.

You’re SpOILing Us

Saudi Arabian Oil giant Saudi Aramco revealed company earnings for the first time. Why is this news? Well, the company is the largest producer in the world for crude oil, generating one in every eight barrels of the world’s supply. The company has reported a 12% lower profit from the previous year where they earned $111 billion in profit, these profits doubled those of Apple in 2018. The significance is that being a private company, Saudi Aramco did not need to report their earnings but did so anyway. Many believe this is their latest stint in an eventual IPO. If Aramco was to go public, it would be the largest public offering in history.