Lyft announces a resumption of travel and expects profits by the end of 2021

News

Lyft announces a resumption of travel and expects profits by the end of 2021

13.11.2020 News

Shares of Lyft, which fell 16.2% since the beginning of the year but jumped 37.4% over the past week, rose 5.8% amid investor reaction to the company’s quarterly report.

Lyft reported a loss for the third quarter (ended September 30) at $ 1.46, which is worse than analysts’ forecasts at – $ 0.91 loss per share. At the same time, this figure is 7% better than the losses of the same quarter of 2019.

Losses in the third quarter fell slightly to $ 460 million from $ 463 million a year ago. At the end of the quarter, the balance of available cash and cash equivalents amounted to $ 2.5 billion.

Total revenue was $ 499.7 million, better than analysts’ expected $ 486.6 million, down 48% from last year, but better than revenue of $ 339.3 million and down 61% in the previous second quarter.

The number of active users of the Lyft platform, which in addition to taxi services includes the recently launched food delivery, car, motorcycle and bicycle rental service, was 12.5 million in the third quarter, a significant increase from 8.69 million in the second quarter, but far from Lyft’s 22.3 million customers in the third quarter of last year.

Lyft co-founder and CEO Logan Green noted the recovery of financial indicators compared to last quarter, saying he expects further growth in demand.

Compared to the fourth quarter, Lyft expects revenue growth from 11% to 15% and an increase in the number of users by 800 thousand – 1 million.

CFO Brian Roberts said Lyft “is still focused on achieving profitability (adjusted by Ebitda) until the fourth quarter of next year, even with a slower recovery.”

The rise in shares of Lyft, as well as the shares of its main big competitor Uber (UBER), in recent days was based on the victory of the vote in California in favor of their business and reduced labor costs, as well as overall market growth amid positive expectations of a rapid invention of vaccine from COVID -19.

Last week, Uber also announced its 3rd quarter results, which proved to be the best for Lyft both due to its wider market reach (Uber has business worldwide, Lyft – only in the US) and due to the developed food delivery business Uber Eats.

At the same time, Lyft is preparing to compete with Uber Eats, by providing cheaper delivery services to restaurants and cafes, while Uber is charging high commissions. In October, Lyft announced a partnership with GrubHub, the US food ordering platform.

“The company has the infrastructure and technical capabilities to become a powerful player in the field of food delivery, so expect that in the near future they will seriously challenge companies like Uber Eats,” said investing.com analyst Harris Anwar.

Other articles

  • Uber stops developing a car without a driver
    News

    Uber stops developing a car without a driver

    On Monday, December 7, Uber and startup Aurora Technologies announced an agreement under which Aurora will take over Uber’s Advanced Technologies Group, which has been developing self-governing cars. Under the terms of the agreement, Uber will receive $ 400 million, 26% of Aurora shares, and the general director of the taxi service, Dara Khosrowshahi, will […]

  • Pfizer and BioNTech have applied for registration of the COVID-19 vaccine in Europe
    News

    Pfizer and BioNTech have applied for registration of the COVID-19 vaccine in Europe

    The American company Pfizer and the German BioNTech have applied to the European Medicines Agency for registration of their coronavirus vaccine. The announcement was published on the BioNTech website. “On Monday, November 30, Pfizer and BioNTech filed a formal application with the European Medicines Agency for a conditional authorization to use their COVID-19 candidate vaccine […]

  • Shares of Moderna rose by almost 20% after news of the vaccine
    News

    Shares of Moderna rose by almost 20% after news of the vaccine

    The vaccine, developed by biotechnology company Moderna, is effective in 94.5% of cases. This result was shown by the intermediate results of the third phase of clinical trials, the company said. On this news, Moderna shares went up. In the pre-market, the company’s quoting rose by more than 18%, rising above $ 105 per share. […]

  • Citigroup predicted the dollar to fall by 20% next year
    News

    Citigroup predicted the dollar to fall by 20% next year

    If coronavirus vaccines become widely available and help restore international trade and economic growth, the dollar is likely to fall by 20% in 2021. Bloomberg reports that this forecast was made by Citigroup Bank. If the forecast comes true, it will be a record drop since 1985, when the DXY index fell by 18.5% over […]

  • CEO Pfizer sold $ 5.6 million worth of shares
    News

    CEO Pfizer sold $ 5.6 million worth of shares

    On Monday, November 9, Pfizer CEO Albert Burla sold 62% of his shares in the pharmaceutical company. This was reported by Markers Insider, citing documents from the US Securities and Exchange Commission (SEC). On the same day, Pfizer and BioNTech announced that their experimental COVID-19 vaccine had been successfully tested. Albert Burla sold 132,508 shares […]

  • Shares of Zoom and other IT companies crashed on news of successful testing of the vaccine from COVID-19
    News

    Shares of Zoom and other IT companies crashed on news of successful testing of the vaccine from COVID-19

    Shares of Zoom and other companies, which rose amid the pandemic and lockdown, fell in trading on Monday. The reason was the announcement of two biotechnology companies about the successful testing of a promising vaccine, writes CNBC. Shares of the Zoom video conferencing service fell 17.4% by the end of the trading day. Amazon and […]

  • The price of oil exceeded $ 44 on news from the United States
    News

    The price of oil exceeded $ 44 on news from the United States

    World oil prices of reference brands continue to rise on the news of the victory of the Democratic candidate Joe Biden in the US presidential election and information on the success of tests of the vaccine from COVID-19 of the American company Pfizer Inc. and German BioNTech. This is evidenced by trading data on Wednesday, […]

Read also

Lyft announces a resumption of travel and expects profits by the end of 2021
News

Telegram has placed $ 1 billion worth of bonds

Telegram Group of businessperson Pavel Durov placed five-year convertible dollar bonds on the market for the first time and raised $ 1 billion. The bond rate was 7% per annum, Forbes reported on Monday, March 15, citing one of the executives involved in the placement. “Holders of Telegram bonds will be able to convert them […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

China is interested in the construction of grain processing plant in Ukraine

The direction of the Chinese “Anhui Foreign Economic Construction Corporation” expressed interest in the construction of the grain processing plant in the territory of Ukraine, the products of which will be exported to China. This was said by the vice-president of the “Anhui Foreign Economic Construction Corporation” Zhang Zhonghua at a briefing in the framework […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

In the United States, the number of Americans who have applied for unemployment benefits is growing again

The U.S. Department of Labor’s weekly report on Thursday showed that the number of initial applications for unemployment benefits in the country rose to 1.106 million in the week ended August 15, which is worse than the forecast of economists at 925 thousand and worse than the previous week, when the figure of 971 thousand […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Astarta agricultural company invests € 24 million in development of its business

According to the CEO of Astarta, Victor Ivanchik, the investment plan has already been approved. The money also will be spent on the modernization of agricultural production and technology, modernization of sugar factories. The total investment of agricultural holding Astarta for 2016 remains at the level of 2015 and amounts to € 24 million, 60% […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

UkraineInvest will support large investment projects in Ukraine

The Cabinet of Ministers has authorized the Office for Investment Attraction and Support (UkraineInvest) to accompany persons who invest more than 20 million euros in Ukraine. The Cabinet of Ministers made the decision at a meeting the day before. Now UkraineInvest will support the investor in the preparation and implementation of the project with significant […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

BMW is forced to shut down factories due to a shortage of microchips

Another plant of the German carmaker BMW has been suspended. Next week, the company’s plant in Regensburg will be temporarily closed due to a shortage of semiconductor microchips, a BMW representative told the industry publication Automobilwoche. The plant will be shut down completely throughout the week. After that, a summer break will begin at the […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Investors against Citigroup

PIMCO and other investors appealed to the court with the case against Citigroup, due to the fact that the bank is not able to control the mortgage loans, resulting in $2.3 billion of losses. Citigroup will respond in a New York´s state court in Manhattan for actions that not justified the confidence of investors. Now […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Lauffer Group invests in its businesses in Kharkiv 10 mln. UAH

Lauffer Group plans to increase investment in its bakeries in Kharkiv to 10 million UAH, – writes the press service of the company. According to the head of the business Lauffer Group in Kharkov, Bogdan Alexandrov, in 2015 the company invested in Kharkiv bakeries 4 million UAH. “Re-equipment of the production was carried out in […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

The price of oil exceeded $ 44 on news from the United States

World oil prices of reference brands continue to rise on the news of the victory of the Democratic candidate Joe Biden in the US presidential election and information on the success of tests of the vaccine from COVID-19 of the American company Pfizer Inc. and German BioNTech. This is evidenced by trading data on Wednesday, […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Dr. Reddy’s plans to expand business in Ukrainian market

Indian Pharmaceutical Manufacturers Association unites the representatives of Indian pharmaceutical companies in Ukraine.  The executive vice president of the Dr. Reddy’s  M. V.  Ramana  pointed out that Ukraine is one of the key markets in which the activity of the company  is focused. International pharmaceutical company Dr. Reddy’s (India) remains optimistic about the Ukrainian pharmaceutical […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Ryanair has been fined millions of euros in Italy

The Italian Competition and Market Administration has fined the Irish airline Ryanair 4.2 million euros for the fact that the carrier did not reimburse the cost of tickets for canceled flights after June 3, 2020. It is noted that the Antimonopoly Office recognized this practice as unfair after the easing of restrictions on movement in […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

In the new year some of the individual entrepreneurs will be in the shadow: Why work openly became not profitable?

Since the end of 2016 year it has been observed in Ukraine a negative surge of activity among sole proprietorships. It is talking about a mass liquidation of FOP associated with the innovations of the taxation system in Ukraine. Thus, according to the legislation since January 1st of this year, every natural persons-entrepreneurs are undertaken […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

The world’s largest free trade area has been created

China, Australia, Japan and 12 other countries in the Asia-Pacific region have formed the world’s largest free trade area. The agreement was signed during the online summit of the Association of Southeast Asian Nations. We are talking about the creation of a free trade area called the Comprehensive Regional Economic Partnership (CREP). The following countries […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Amazon is in talks to buy Metro-Goldwyn-Mayer for $ 9 billion

Amazon seems to be looking for a new strong factor for its growth. On Monday, the media wrote about its talks with MGM Holdings, the holding company that owns the 100-year-old film studio Metro-Goldwyn-Mayer. Shares of Amazon jumped 1.47% at the close of trading on the NASDAQ on Monday, continuing to rise in non-trading time. […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

Microsoft has announced to acquire TikTok in the United States by September 15

Microsoft announced the plan: to buy the fashionable social application TikTok, that owned by the Chinese company Bytedance Ltd, and confirms the long-standing efforts of the technology giant to occupy a niche in the digital advertising market, along with Facebook and Google. It is known that Microsoft intends to acquire TikTok’s business in the United […]

Next
Lyft announces a resumption of travel and expects profits by the end of 2021
News

The NBU estimated payments on public debt for the year

Over the next 12 months, Ukraine must pay $ 10 billion from its foreign currency debt. This is stated in the June report of the National Bank on financial stability. “Over the next 12 months, only foreign currency payments of the government and the NBU on public and guaranteed debt will exceed $ 10 billion. […]

Next