While the ride-sharing service did well overall, it wasn't all smooth-sailing for Lyft the whole year. The second quarter of 2016 was its worst quarter ever due to subsidies, marketing and incentives to get both drivers and riders to sign up. It only started recovering in the second half of the year by taking certain measures: it stopped offering free coupons, controlled the entry of new hires and reduced how much it spent in marketing. It also expanded and promoted its shared ride option Lyft Line, which makes more money than the standard Lyft

The publication says it's encouraging that both Uber's and Lyft's losses "as a percentage of total revenue are falling." However, they still need to find more ways to achieve profitability, such as getting drivers to stay, since it's spending so much to entice them to sign up. The company aims to keep reducing losses every quarter until it becomes profitable by 2018.