1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Lyft’s third-quarter results beat the FactSet consensus estimates on the top and bottom line as demand for the firm’s services continued to strengthen with increases in riders and revenue per rider. On the supply side, more drivers jumped on the platform, which together with strong demand displayed Lyft’s network effect moat source. Higher ride volume along with lower rider acquisition costs improved Lyft’s adjusted EBITDA margin.
Lyft is the second- largest ride-sharing service provider in the U.S., connecting riders and drivers over the Lyft app. Lyft recently entered the Canadian market in an effort to expand its market outside the U.S. Incorporated in 2013, Lyft offers a variety of rides via private vehicles, including traditional private rides, shared rides, and luxury ones. Besides ride-share, Lyft also has entered the bike- and scooter-share market to bring multimodal transportation options to users.
