Lyft stock deflects lower amid falling passenger volume
Yahoo Finance Live presenters take a look at Lyft’s stock after a disappointing earnings report.
DAVE BRIGGS: My game also in space, at least in terms of vehicles, Lyft, the ride-sharing app, a trending ticker on Yahoo Finance. Stocks collapsed. The ride-hailing company reported third-quarter revenue that was well below estimates, and active riders are well below Wall Street estimates. The number of people using Lyft in the third quarter is more than 2 million below its pre-pandemic level of nearly 23 million. And that’s in stark contrast to rival Uber, which says they are now exceeding pre-COVID passenger levels after beating estimates last week.
Now Uber shares are still down 37% year-to-date. But that’s a far cry from Lyft. Losses this year? Well, they lost almost 3/4 of their market capitalization. Stocks are down more than 20% today, Rachelle. And it surprises me, just from a rider level perspective, that Uber is above pre-COVID, and Lyft is over 2 million below. I thought people pick and choose based on price at that time. Apparently not.
RACHELLE AKUFFO: Well, you know, so there’s an interesting dynamic going on because outside of ridesharing, Uber has done a lot better – has a much better way ecosystem-wise. You have UberEats. You have other ways for drivers to make more money. So you have more opportunities there. Lyft really only relies on its ride-sharing business.
So if you can attract more people into your ecosystem – drivers, passengers – you can give them reward points and things like that. This makes you a more loyal customer to the Uber brand than to the Lyft brand. Of course, in a pinch, when you want to try and pick the cheapest option just for carpooling, you can turn to Lyft. But if you can get Uber’s points and perks, you’re more likely to go that route.
SEANA SMITH: I always look at both to compare.
DAVE BRIGGS: Me too.
SEANA SMITH: I am cheap. I always want the best deal.
DAVE BRIGGS: Every time.