On Thursday, Lyft was taken back by the low shares in its fourth quarter and is concerned about falling behind its competitor, Uber.
Its stock price went down by -3.16% to $16.22 per share on February 09. Also, it is anticipated to drop by -30.33% to $11.30 apiece in the upcoming session.
The earnings per share of Lyft decreased to -$0.74, missing the analysts’ forecasts of $0.15. It is lower than the previous $0.11 data.
On the other hand, its revenue increased to $1.18 billion, surpassing the $1.15 billion estimates. The figures are higher than the $1.05 billion record.
According to Lyft President John Zimmer, the ride-hailing service company planned on having lower prices.
Furthermore, the business’ plunge was equivalent to a $2.00 billion loss in its market cap.
Based on an expert’s statement, Lyft is struggling compared to Uber and needs to reevaluate its operations.
For the Q1, its guidance shows the result of having low prices. Also, it reported an adjusted EBITDA of $126.70 million, excluding the $375.00 million for insurance.
Likewise, the company wants to strengthen its insurance to avoid volatility along the way.
Additionally, Lyft announced a guided revenue of $975.00 million, lower than Wall Street’s forecast of $1.10 billion.
Moreover, their active riders rose by 8.70% to $20.36 million, beating the expected $20.30 million estimates.
Electric Citi Bikes Hopes to be Boosted by Lyft
Lyft hopes to increase the number of electric Citi Bikes on the streets. The entity plans to make it happen by gaining help from former City Council Speaker Corey Johnson.
It is paying Johnson $12,500.00 every month to lobby the transportation department. This will create efforts to raise the price cap. Its rise would mean more pricing control for the system of Lyft.
Besides, unlike the pedal-powered Citi Bikes, Lyft can increase the price of its e-bikes at any time. However, those types of vehicles’ rates are already expensive.
Riders pay an extra $0.26 per minute when riding them. Still, they can only give $0.17 if they paid a $205.00 annual fee for a Citi Bike membership.
