- After Lyft (LYFT) forecasted lower-than-expected profits, its shares dipped 36% to $10.31 – the biggest decline since its IPO in 2019.
- In this quarter, Lyft projected earnings between $5M to $15M, before interest, tax, depreciation, and amortization. It massively missed its $83M average and is now aiming to cut prices to lure customers. In contrast, its rival Uber witnessed ride bookings soar by 31% in the fourth quarter.
Why it matters
Even though Lyft has failed to bring its ridership back to pre-pandemic levels, Uber’s performance shows that inflation has not been able to deter consumers from paying high commute costs. Uber announced on Wednesday that it had achieved a new milestone, surpassing 2 billion rides in a single quarter for the first time, averaging almost 1 million trips per hour. Gross bookings, or the total fares paid, rose by 31% year-on-year.
