Editor’s note: A version of this post was previously published by ValueChampion, a research firm that aims to help consumers make smarter decisions with their money.

Since Lyft’s IPO and the precipitous drop in its stock price, many investors have been quite concerned about Uber’s upcoming IPO. To be fair, Uber has made a number of maneuvers to improve its profitability, and its newly lowered valuation could help appease some of these concerns.

In particular, Uber has famously exited its business in China, Southeast Asia and Russia in order to cut its losses; in return for selling its local businesses, it received equity stakes in its competitors, forming something of an alliance with Didi Chuxing in China, Grab in SE Asia and Yandex.Taxi in Russia. However, recent data suggests that these “alliances” actually may be less friendly than expected. In fact, each of these players are making solid progress expanding their footprints into Uber’s markets. If this trend continues, it may re-heat competition as regional whales encroach into one another’s territory, making profitability even more difficult to achieve than expected as they continue spending on subsidies and promotions to gain market share.

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DJ Kang

DJ Kang is the CEO of ValueChampion. He covers the financial services industry, consumer finance products, budgeting, and investing. He previously worked in the financial services industry, including at...