Investment primarily aims to provide the investor with profits, but it is always accompanied by exposure to risk and requires effective forecasting and decision-making. Grubhub Company is experiencing a drop in stock value while Lyft and other ride-hailing companies are experiencing tremendous growth. This paper aims to provide a summary of two articles, "Grubhub Deals Gut Check for Food-Delivery Companies", (Haddon, 1-4) and "Lyft Raises Guidance, Reports Increased Revenue", (Somerville, 1-3)
Investing in GrubHub today is a risk since the company has seen a drop in customers and net income in the last few quarters, but it could pay since the company has heavily invested in marketing as well its planned addition of restaurants to its platform. The company can get back on track through shifting its strategies to match those provided by its competitors, for instance, the provision of more discounts and delivery from more restaurants. Its competitors are well funded, and thus, have rapidly expanded in the last year. The food delivery industry has become an important commodity based on the current settings, and companies that have developed the right systems and services will see the future.
Ride-hailing services/apps like Uber and Lyft offer unreadable ways a passenger can determine how much they spend per ride. They offer different pricing plans, and thus, determining the best ride-hailing app depends on a variety of factors. These companies offer subscription plans, especially for frequent riders and as a frequent rider, there are a variety of plans to choose from (both in Uber and Lyft). The best option for my monthly needs is Lyft’s All-Access-Plan that costs $299 for 30 rides monthly and an average of $10 a ride monthly. The plan is a low-cost alternative to owning a car and helps save on maintenance, insurance, gas charges, and the pain of parking fees, which costs approximately $9,000 per annum.
Haddon, Heather. "Grubhub Deals Gut Check for Food-Delivery Companies." WSJ, 29 Oct. 2019, www.wsj.com/articles/grubhub-deals-gut-check-for-food-delivery-companies-11572384327?mod=hp_lista_pos1.
Somerville, Heather. "Lyft Raises Guidance, Reports Increased Revenue." WSJ, 30 Oct. 2019, www.wsj.com/articles/lyft-raises-guidance-reports-increased-revenue-11572466096?mod=business_lead_pos7&ns=prod/accounts-wsj.