One of Uber’s main competitors – Lyft – took the market by surprise with better-than-expected first-quarter 2021 results
The ride-hailing company reported a loss-per-share of 35 cents, lower than what the market expected – 53 cents. Revenue figures also came ahead of the $558.7 million consensus, at $609 million. At the same time, the number of active riders rose significantly in the quarter, reaching 13.49 million.
Lyft’s results came after last week it sold its self-driving car unit to Woven Planet – a Toyota subsidiary – for $550 million in cash to advance its profitability timeline.
For the second quarter of 2021, Lyft expects its revenue to reach a high of $700 million, which could mark a 15% increase quarter over quarter. But as time passes and people are returning to work, the company is facing a growing need for more drivers, believing that the supply and demand issue could last until the third quarter.
After the news hit the wires, Lyft stock price traded 7% higher.