Lyft Faces a Tall Task in Clawing Share Back From Uber

In the U.S. market, Lyft has quickly emerged as the number two ride-sharing player, a position we think the firm will keep for years to come. It has successfully gained share going head to head against the market leader, Uber, in pursuing riders in an addressable market (including taxis, ride-sharing, bikes, and scooters) that we value at over $670 billion (based on gross revenue) by 2027, from our estimate of over $430 billion in 2022. In our view, Lyft warrants a narrow economic moat and a stable moat trend rating, thanks to the network effect around its ride-sharing platform and intangible assets associated with riders, rides, and mapping data, which we think can drive Lyft to profitability and excess returns on invested capital.