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Here is how much lifting uses at AWS – The Motley Fool



Popular Ridesharing Platform Lift officially filed their IPO documents with the SEC last week, giving public investors their first look at their books. As many modern tech companies founded in the last decade, Lyft has chosen to outsource its cloud infrastructure to third-party vendors rather than building a network of data centers for itself. In this case, we are talking about market leader Amazon.com (NASDAQ: AMZN) . Before filing, Amazon Web Services (AWS) announced that Lyft "went all-in" on the platform.

Here is how much Heft has committed to spend on AWS.

  Lift app interface shown on three smartphones

The Lyft app, powered by AWS. Image source: Lift.

Hi, Big Spender

In his S-1 registration statement, in January, Lyft agreed to a $ 300 million expense commitment between January 2019 and December 2021 at AWS. The Ridesharing Company is on the hook to spend at least $ 80 million a year over the next three years, and has to hit a total of $ 300 million by the end of 2021. The commitment replaces a previous spending commitment dating back to March 2018, in which Lyft had committed to spend $ 150 million by June 2021.

Lyft's primary rival, Uber, is also an AWS customer. Uber had also previously confidentially filed its IPO documents around the same time that Lyft did, so a public version of S-1 that could detail similar AWS spending obligations could be available soon.

Expenditure obligations faded compared to others that have been revealed in recent years. Snapchat parent Snap had committed $ 3 billion in cloud computing from 2017 to 2021, although the expenses are split between two providers: AWS and Alphabet s Google Cloud.

Outcomes happen, but not too often

Lyft reveals its AWS agreement as a risk factor, which is true for all companies that rely solely on third-party cloud infrastructure. AWS outbreaks occur and bring down wide swathes on the internet when they happen.

"We have experienced and expect that in the future we will experience, interrupt, delay and service breakdowns and availability from time to time due to a variety of factors, including infrastructure changes, human or software failures, website server disruptions and capacity constraints, writes Lifting. "In addition, any changes in the AWS service levels may affect our ability to meet user requirements." Lifting has not been affected by AWS errors for many years, but with the latest documented episodes dating back to 2012 The company experienced two outbreaks that year.

AWS has grown significantly since then, and improved capacity, performance and reliability in the process. The risk associated with AWS is quite modest as a result. Lifting is just one company that is part of a new generation of technological start-up that points to its operations at AWS.

John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fools Board. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools Board. Evan Niu, CFA owns shares in Amazon. Motley Fool owns and recommends GOOGL, GOOG and Amazon shares. Motley Fool has a disclosure policy.


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