Last week on-demand transportation service Lyft announced that it had raised $530 million in new funding as it seeks to steal market share away from arch-rival Uber and launch services in new markets in the U.S. and internationally. The newly minted unicorn expects to earn more than $1 billion in gross revenues in 2015, but according to sources familiar with Lyft’s financial projections, the company doesn’t expect to become profitable until 2016.
This year Lyft is targeting nearly $1.2 billion in gross revenues, of which its take will be around $300 million net. That assumes between 20 and 25 percent commission for the rides it books, depending on whether they are from its classic Lyft offering or Lyft Line, a newly launched shared-ride service that is 40-60 percent cheaper.
The projections show continued growth in its original service as well as accelerated adoption for Lyft Line. The classic Lyft offering…
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