Sunday - Sep 24, 2017

Lyft takes a ride on Hitch to consolidate their Line Service

Lyft takes a ride on Hitch to consolidate their Line Service

With the shared ride’s concept all the rage, new transportation companies seems to be springing up everywhere all of them trying to come up with a new idea for to lower fares while splitting their commute with a stranger.

A company that stood out from the crowd of startups in the line service sector was Hitch, on the scene and well established before today’s market leaders, Lyft Line, UberPool and Sidecar Shared Rides.

Now it appears that the two joint founders of Hitch, Snir Kodesh and Noam Szpiro, have decided that there is safety in numbers by joining forces with one of their major competitors Lyft as they found it too high a mountain to climb to boost the services and routes that they offer.

Although the financial terms of the takeover will be remaining confidential for the time being, what is known is that Hitch will be winding up its operation, and Messrs Kodesh and Szpiro will be joining Lyft to help build up the Line division in what is a total talent acquisition, with the realisation that it would have to be difficult if not impossible for Hitch to take their route-matching technology further.

Hitch needed to catch a lift on the back of a major player in the ride sharing market, where having a critical mass of passengers is a must to reach the profit making goal to match up multiple users for a shared ride.

According to Snir Kodesh the first thing that the company realised was the need to rapidly expand into other markets and regions, against a backdrop of an operational intensity that is really challenging and capital intensive- which they found increasingly difficult to match.

Like many other growth industries coming before them, the number of lift sharing companies is shrinking in the face of consolidation and strong competition, although indications are that the talented visionaries who established the industry will find a place within it.

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