The Lyft logo will appear on screen in the Nasdaq offices in Times Square, New York on March 29, 2019.
Don Emmert | AFP | Getty Images
Lyft is seeing a ride recovery sooner than expected.
In a filing with the SEC on Tuesday, the company said that improving trends will allow it to cut losses by more than expected in the current quarter.
Lyft now expects adjusted EBITDA loss for the first quarter to increase from previously forecasted $ 145 million to $ 150 million to $ 135 million.
The revised forecast is based on an increase in carpooling opportunities. The company said in the filing that the last week of February was the best week by volume since the pandemic lockdowns began in March 2020.
Lyft’s stake rose roughly 8% hours after the company’s announcement.
In addition, Lyft expects the recovery to continue this month, with ridesharing volume growing positively year over year.
Dara Khosrowshahi, CEO of Uber, told Morgan Stanley’s tech conference Monday that he expected the mobility business in the US and Europe to see signs of recovery, but warned that it was “too early to do so.” say”.
Uber and Lyft, the top two US ridesharing providers, have pledged to become profitable on an adjusted EBITDA basis by the end of 2021, although ridesharing has declined sharply in the wake of the pandemic.
While both companies have aggressively cut costs over the past year, their strategies have been different.
Uber has outsourced its more unprofitable businesses and made big bets on the grocery delivery space to replace the revenue lost from ridesharing. Lyft has continued to focus on ridesharing and looking to reopen the economy as a whole. Late last year it was said that a delivery service was being investigated, but it would be business-oriented.
Stocks of both companies have rebounded from last year’s lows, with Uber up more than 60% and Lyft up 50% over the past 12 months.
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