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Lyft ’s strategy of slashing ride - hail fare to vie with Uber has resulted in slow and steady gains for the fellowship , but competition remain fierce .
According to Lyft ’s third - quarter profit , reported Wednesday , Lyft ’s active ridership numbers have increase sequentially quarter - over - quarter this class . In the three months ending September 30 , Lyft recorded 22.4 million combat-ready riders , up from 21.5 million in the second poop and 19.6 million in the first .
Last tail , that protrusion in ridership caused Lyft to take a striking in tax income per active passenger . In Q3 , that problem seems to be correcting itself . Lyft ’s revenue per participating rider was $ 51.67 , up from $ 47.51 in Q2 .
stark bookings , as a outcome , are up QoQ by 3 % . That ’s good news for Lyft , but compared toUber ’s 7 % increase in drive - hail 144 bookingsbetween the second and third quarters , it ’s a little less impressive . specially when we take that Lyft also has a divvy up bicycle and scooter business . The company does n’t break down its gross or megascopic bookings into ride - hail and bikeshare , so it ’s impossible to jazz how much of that gross is made up of ride - hail rider or bike rider .
Still , the battle for ride - hail market share rages on . In the first one-half of the year , Lyft ’s price - veer strategy helped the fellowship gain market share from Uber . But according to information analytics business firm YipitData , Uber wangle to recapture some recede share in August and September .
“ The net result of these switching was stableness in grocery store share in [ the third poop ] , but the trend in the last two months of data has been well-disposed for Uber , ” a interpreter from YipitData tell TechCrunch .
Lyft puzzle Wall Street estimates of $ 1.14 billion , perYahoo Finance information , with a tax revenue of $ 1.158 billion . The caller also managed to in earnest cut down price , as its new - ish chief executive officer David Risherpromised the company would do . Lyft report a net expiration of $ 12.1 million , which is room down from the $ 114.3 million in Q2 , and down from the $ 422.2 million lost in the third one-fourth of 2022 .
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On an correct basis , Lyft reported adjusted EBITDA of $ 92 million for the fourth part , beating its own expectations of between $ 75 million and $ 85 million .
investor have had miscellaneous reactions to Lyft ’s earnings . The drive - hail fellowship ’s fund Mary Leontyne Price jumped 3.6 % directly in after - hr trading , but then immediately plummeted 10 % .
Lyft’s outlook for Q4 2023
The ride - hail colossus is updating how it reports metric function , so this was the first quarter that Lyft reported gross bookings . Starting in Q4 , Lyft say it “ will no longer officially present metrics that anchor to receipts . ” That means Lyft will now present gross booking , active riders , drive and adjusted EBITDA leeway estimate as a percentage of gross bookings , but it will stop report gross per active passenger , adjusted EBITDA border calculated as a per centum of revenue , contribution and part margin .
except revenue per fighting passenger might make it more unmanageable in the future to determine if Lyft is actually making more money by bringing on more riders , or if it ’s subsidize rides to capture grocery store share .
Given these new priorities , Lyft ’s expectation for the 4th quartern is as follow : The companionship expect to pull in staring bookings of between $ 3.6 billion to $ 3.7 billion , with an adjusted EBITDA of $ 50 million to $ 60 million , and an adapt Earnings Before Interest Taxes Depreciation and Amortization allowance of about 1.4 % to 1.6 % .
Growth drivers and tailwinds in Lyft’s future
Aside from price wars with Uber , Lyft is undertake to enamour more riders through other place means .
In September , Lyft introduced itsWomen+ Connect feature , which permit women and nonbinary driver set a preference for foot up only woman riders , to five U.S. city . This was contrive to bestow more women driver to the app , but might also incentivize some char to make the switch from Uber to Lyft .
Some of this looks promising , but Lyft will also present headwinds and hit to the balance sheet of paper in the coming months . Toward the end of Q3 , Lyft got slapped with a$10 million fineover an SEC burster that the ride - hailing company failed to disclose a board theater director ’s role in the sale of $ 424 million Charles Frederick Worth of individual portion before its IPO .
Earlier this calendar month , Lyft and Uber also settled awage - theft claimin New York that will see them pay jointly $ 328 million ( $ 290 million from Uber , $ 38 million from Lyft ) into two funds .
It ’s not yet clear when those debts will have to be paid off .
