Lyft Should Include Drivers in IPO Ownership, NYU's Sundararajan Says

The video discusses the differences between Lyft and Uber, highlighting Lyft's US-centric focus and Uber's diversified global business. It emphasizes the importance of including drivers in Lyft's IPO to align interests and reduce costs. The role of founder control in long-term success is explored, with examples like Amazon. The potential for both companies to achieve high valuations in the vast transportation market is also discussed.

What is a key difference between Lyft and Uber's business models?

• Lyft operates globally, while Uber is US-centric.

• Uber has a diversified business, while Lyft focuses on transporting people.

• Lyft offers food delivery services, while Uber does not.

• Uber is only available in Canada, while Lyft is not.

Why might Lyft want to include drivers in its IPO?

• To reduce the number of drivers on the platform.

• To align driver incentives with company success.

• To ensure drivers work exclusively for Lyft.

• To increase the number of drivers on the platform.

What is one potential benefit of offering stock options to drivers?

• Drivers will demand higher bonuses.

• Drivers will switch to other platforms.

• Drivers will work fewer hours.

• Drivers may accept lower hourly wages.

How does founder control potentially impact the success of companies like Uber and Lyft?

• It guarantees short-term profits.

• It may lead to long-term success by focusing on market share.

• It prevents the company from expanding globally.

• It ensures the company remains small and local.

What is the potential market size for companies like Uber and Lyft?

• The transportation market is limited to the US and Canada.

• The transportation market is only a billion-dollar industry.

• The transportation market is a multi-trillion dollar industry.

• The transportation market is smaller than the advertising market.