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Both companies encounter legal hurdles in various markets, with challenges ranging from local taxi driver protests to stringent regulatory scrutiny. Lyft has strategically avoided some of these complications by partnering with local players like Didi in China, which provides an avenue for expansion without directly competing against the local incumbent.
The Quest for Drivers and Self-Driving Technology
A pressing challenge for both companies is the recruitment and retention of drivers. The quality of vehicles available can hinder driver recruitment, prompting Uber to introduce controversial leasing programs. Lyft's response has been to create a rental program with General Motors, aligning their business model more favorably with prospective drivers.