Publication date: 06.11.2023
Lyft Overview
Lyft is a company based in the US that offers a variety of mobility services. Among them there are ride-hailing, bike sharing systems, rental cars, electric scooters, vehicle rentals, and food delivery.
The company currently operates in the US and some cities in Canada. Actually, Lyft is the second-largest ride-sharing company in the US, with Uber being the largest.
Partners
The company has thousands of partners. In particular, Lyft collaborates with organizations to streamline business travel. The ride-hailing service offers flexible options for schedules and budgets to assist employees with their daily commutes. What’s more, Lyft arranges rides for important individuals within partner organizations. It also provides convenient transportation options for medical appointments, supporting healthcare. Lastly, Lyft offers reliable transportation solutions for partner events.
For example, among partner organizations we can find Mercedes Benz, Agero, Salesforce, AmeriHealth Caritas DC, AARP and many more.
Competitors
According to Lyft’s annual report for the fiscal year 2021, the company has several main competitors.
In the United States and Canada, Lyft faces significant competition with Uber and Via in the ridesharing industry. On the other hand, in the bike and scooter sharing sector, Lime and Bird are its major opponents. Meanwhile, within the consumer vehicle rental market, Lyft competes with Enterprise, Hertz, and Avis
Budget Group, as well as emerging car-sharing platforms.
Financial Performance
Lyft's revenue had been steadily increasing since 2018, but it took a hit in 2020 due to COVID-19. However, it began to grow again and in 2022, the total revenue reached $4095 million. So, this was a significant increase of 27.8% from the previous year.
The gross income also shows the impact of the pandemic as it grew and then suddenly dropped in 2020. Unfortunately, when it comes to net income, Lyft has not been performing well with the percentage always staying below zero. This indicates that the company is experiencing several losses.
Lyft Quarter Statement after Covid
Now let’s take a look at the quarter statement after the COVID-19 outbreak. We can see that the total revenue and gross profit have grown year by year when comparing the same quarter from the previous year. However, the net income has not been improving steadily and has shown several changes.
Lyft’s Riders
As we can see on the table below, in 2019 Lyft had the most riders it's ever had, with 22.9 million active users. However, in 2022 the number dropped to 20.3 million, indicating that the company was unable to reach its pre-COVID peak.
Hope For Better Future
In May Lyft fired 1072 employees, which is 26% of its workers at the time. The aim was to lower prices while increasing driver earnings. It was also driven by the necessity to provide additional rides with faster pickup times.
According to Dealroom estimates, Lyft's profit is expected to witness a significant increase. It was recorded at -1.585 billion in 2022 and is estimated to be around -40.2 million. While it is still a loss, it is significantly less than before.
Technical Analysis
LYFT hasn't been doing as well in the market because 74% of other stocks performed better than it over the past year. In fact, LYFT is included in the Ground Transportation industry, which has 38 stocks in total. Approximately 70% of these stocks are performing better than LYFT.
In the last month, LYFT's stock price has been bouncing around between $9.72 and $11.68. Right now, it's closer to the lower end of that range ($10.09 on 21.10.2023). Also, LYFT is traded quite a bit, with an average of 11 990 300 shares traded daily. This is a positive sign because it means the stock is easy to buy or sell.
Invest or not in Lyft stock?
LYFT's recent performance in the short term hasn't been great, however the long-term outlook looks more stable. Actually, Lyft has expressed its intention to achieve profitability in the future. The company is actively working on cost reduction and operational efficiency improvements. Despite these efforts, Lyft has also expressed its desire to continue growing in the market.
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Reference List
FAQs
Lyft has a consensus rating of Moderate Buy which is based on 8 buy ratings, 21 hold ratings and 0 sell ratings. The average price target for Lyft is $19.34. This is based on 29 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
What is the future of Lyft stock? ›
Stock Price Forecast
The 27 analysts with 12-month price forecasts for Lyft, Inc. stock have an average target of 18.33, with a low estimate of 10 and a high estimate of 24. The average target predicts an increase of 33.02% from the current stock price of 13.78.
How much will Lyft make in 2024? ›
First Quarter 2024 Financial Highlights:
Revenue of $1.3 billion was up 28% year-over-year. Net loss of $31.5 million compares with $187.6 million in Q1'23. Net loss includes $87.5 million of stock-based compensation and related payroll tax expenses.
Is Lyft a good company to invest in? ›
Analysts Turn Bullish On Lyft
Analysts set a price target of 20 for Lyft stock. BofA analyst Michael McGovern particularly liked Lyft's projected growth for its ad business, with targets to grow from $50 million this year to $400 million in sales by 2027.
What is the stock forecast for Lyft in 2030? ›
Lyft stock price stood at $13.78
According to the latest long-term forecast, Lyft price will hit $17 by the end of 2025 and then $25 by the end of 2026. Lyft will rise to $30 within the year of 2029, $35 in 2030, $40 in 2032 and $45 in 2034.
Is Uber or Lyft a better investment? ›
While Uber's overall market cap dwarfs Lyft's, it doesn't guarantee better performance or a safer investment. Recent performance has shown a degree of volatility with both stocks. Another thing to consider is that Uber has recently become a profitable company, leaving Lyft and many other delivery companies behind.
What is the financial forecast for Lyft? ›
For the second quarter of 2024, LYFT expects gross bookings of $4.0-$4.1 billion, which implies year-over-year growth of 16-19%. The adjusted EBITDA is estimated to be in the range of $95-100 million, and the adjusted EBITDA margin (calculated as a percentage of gross bookings) is expected to be around 2.4%.
What is the Zacks rating of Lyft stock? ›
Broker Rating
Lyft currently has an average brokerage recommendation (ABR) of 2.59 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 34 brokerage firms. The current ABR compares to an ABR of 2.84 a month ago based on 32 recommendations.
How to make $2,000 a week with Lyft? ›
How many hours would you need to work to make $2000 a week with Lyft? Well, Lyft claims that its drivers' average hourly income, with tips included, is $24. Therefore, to make $2000 a week with Lyft at the standard rate, you'd need to work for around 83 hours per week.
Can I make a living off Lyft? ›
Driving at Lyft can be a useful side hustle, but it isn't the best way to generate a full-time income. The average Lyft driver earns $21.51 per hour with some drivers earning $30 per hour. You will have to spend extra money on gas, insurance, vehicle maintenance, and other costs.
As outlined in this article, it's possible to hit at least $1,000 a week doing Uber and/or Lyft. Success boils down to strategy, persistence, and setting a realistic plan of attack — along with thinking of this job as a full-time job and personal business, not just a side hustle.
Who owns most of Lyft stock? ›
Lyft (LYFT) Ownership Overview
Approximately 58.57% of the company's stock is owned by Institutional Investors, 21.64% is owned by Insiders and 19.79% is owned by Public Companies and Individual Investors. The ownership structure of Lyft (LYFT) stock is a mix of institutional, retail and individual investors.
Should I trust Lyft? ›
High safety standards
We always treat each other with respect, and we don't tolerate discrimination. Anyone who violates our policies may be permanently removed from the platform. You can cancel any ride that makes you feel unsafe.
Is Uber a good stock long term? ›
With its 3-star rating, we believe Uber's stock is fairly valued compared with our long-term fair value estimate of $80 per share, which represents an enterprise value of 3.9 times our 2024 revenue estimate. We project that Uber's revenue will grow 14% annually on average over the next five years.
Is Lyft stock overvalued? ›
With its 4-star rating, we believe Lyft stock is undervalued compared with our long-term fair value estimate of $25 per share, representing an enterprise value of 2 times 2024 net sales. We project that Lyft's net revenue over the next five years will grow 11% annually on average.
What is up with LYFT stock? ›
Lyft Stock Nabs Bullish Double-Upgrade On New Growth Targets
Lyft stock won an analyst upgrade after the company published long-term targets for bookings growth and adjusted profits.
What will Uber stock be worth in 5 years? ›
According to the latest long-term forecast, Uber price will hit $80 by the end of 2024 and then $125 by the end of 2025. Uber will rise to $150 within the year of 2026, $200 in 2029, $250 in 2032 and $300 in 2035.
Should I sell my Lyft stock? ›
Lyft has received a consensus rating of Hold. The company's average rating score is 2.37, and is based on 10 buy ratings, 18 hold ratings, and 1 sell rating.
What makes better money Uber or Lyft? ›
Terms may apply to offers listed on this page. On average, Uber paid its drivers more per hour than Lyft in 2022, according to Gridwise. Uber drivers had gross earnings of $21.14 per hour in 2022, while Lyft drivers were grossing $19.90.
Will Uber buy Lyft? ›
In answer to your first question, they haven't merged because nobody has presented an offer that was appealing to both parties. Uber has long expressed an interest in acquiring Lyft, but has never made a serious offer to do so.
Is UBER a Buy, Sell or Hold? Uber Technologies has a consensus rating of Strong Buy which is based on 29 buy ratings, 1 hold ratings and 0 sell ratings.
What is the forecast for ride stock? ›
The average price target is $0.45 with a high forecast of $0.45 and a low forecast of $0.45. The average price target represents a -79.55% change from the last price of $2.20.
What is the fair value of Lyft stock? ›
As of 2024-06-19, the Fair Value of Lyft Inc (LYFT) is -2.28 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 13.78 USD, the upside of Lyft Inc is -116.6%.
