NEW YORK – Recent public service companies Uber and Lyft have fallen more than 25% since their original offering, but Light Street & # 39; s Glen Kacher still believes there is a path to profitability for them.
"The end market is huge," said Kacher, chief investment officer and founder of Light Street Capital, at the Delivering Alpha conference presented by CNBC and Institutional Investor.
Kacher said that Uber and Lyft are both increasing prices rapidly in the United States, and that they are also benefiting from an increase in food delivery business. Kacher, who manages $ 2 billion in global technology assets, said he is a shareholder in both companies.
However, there has been no smooth sailing for these two service companies. Uber went public in May, reporting a $ 1
"Investors and maybe the financial press are pretty negative" on both companies, Kacher said.
Scott Kupor, Managing Partner Andreessen Horowitz, is less capable of them as their cash-intensive business is less likely to live well in a late-cycle environment.
Kupor said he sees great opportunities in enterprise software companies.
"I think the market size for these [software] companies is only substantially larger than we expected," Kupor said. He highlighted cloud-based software company Salesforce whose share has risen 12% this year.