Lyft stock traded lower Thursday despite an earnings report late Wednesday that topped expectations. Newly disclosed data by Lyft (LYFT) on total bookings brought unfavorable comparisons to its larger ride-hailing rival Uber (UBER).
Why is Lyft failing?
High prices were pushing passengers to Uber or other modes of transportation, and the company said lower prices would benefit it down the road. Employees have worried for months about Lyft's poor stock performance, and some were even more alarmed by the recent plunge, two current employees said.
Is Lyft operating at a loss?
Lyft's net losses stood at just under 1.6 billion U.S. dollars in 2022. This was a larger loss than in 2021, when the company's net loss stood at just over one billion U.S. dollars. Lyft offers a ride-hailing app, but its operations also include shared e-scooter services and self-driving vehicles.
Why does Lyft fall?
Lyft shares fell after the company reported its slowest revenue growth in two years, overshadowing a better-than-expected outlook for earnings, as the company struggles to get its ridership back on track.
Will Lyft bounce back?
The slow pace suggests Lyft is still struggling to bounce back from the pandemic. Lyft and Uber saw demand for their services ravaged by Covid-19, a blow exacerbated by a driver shortage that pushed up fares and wait times for customers.
Can Lyft survive?
Uber and Lyft have comparable gross margins, but Lyft's operating costs-to-sales are far higher due to immense stock-based compensation. Given Lyft's liquidity position and cash burn rate, I do not believe it will survive through 2024.
Why is Lyft losing?
Why is Lyft tanking?
Lyft stock is down sharply after the ride-sharing company provided disappointing first-quarter guidance . The company suffered a substantial adjusted fourth-quarter loss, largely reflecting an increase in insurance reserves, and a change in the way the company accounts for those reserves.
Is Lyft doing well financially?
Revenue of $1.021 billion was up 3% year-over-year, reflecting strong growth in rideshare rides, up 18% year-over-year. Net loss of $114.3 million compares with $187.6 million in Q1'23 and $377.2 million in Q2'22.
Who makes better money Uber or Lyft?
All in all, Uber drivers in 2022 were grossing about $1,040 on average per month, while Lyft drivers were grossing $787 per month. Now, that's not to say Uber drivers always make more than Lyft drivers for the same hours or miles driven.
Is Lyft laying off drivers?
Lyft to cut 1,072 employees, or 26% of its workforceThe layoffs had been announced last week without a specific number. New CEO David Risher told employees that the cuts would form part of a continued focus on “better meeting” consumer and driver needs.
Why is Lyft being sued?
California's Labor Commissioner is suing Uber and Lyft for committing wage theft by willfully misclassifying drivers as independent contractors instead of employees. Misclassification deprives the drivers of basic rights under California labor law.
Is Lyft less popular than Uber?
Uber dominates U.S. market shareBy April 2022, observed sales at Uber exceeded their pre-pandemic levels and remained elevated throughout most months of 2022 and into 2023. Meanwhile, observed sales at Lyft are yet to reach their pre-pandemic levels as of October 2023.
What is the controversy with Lyft?
New lawsuits say Lyft failed to protect its users from physical and sexual assault. The San Francisco-based ridesharing company Lyft is facing 17 new lawsuits brought by users of its service from around the country, who claim the company failed to protect passengers and drivers from physical and sexual assault.