Why Lyft Is Headed for Its Own Recession

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Fundamentals show ride-hailer’s rebound likely to stall as the new year progresses

After losing around three-quarters of its market value last year, Lyft‘s shares are up almost 47% this month. A close look at the ride-hailer’s fundamentals suggest that kind of rebound hasn’t yet been earned. 

Lyft, which historically has been dusted by more global competitor Uber Technologies, isn’t suddenly gaining ground. In an initiation report in early January, Jefferies analyst John Colantuoni estimated the ride-hailer ended last year with around 29% U.S. market share to Uber’s 71%. His estimates show Lyft exiting the pandemic in arguably worse shape than it entered it, having lost around 3 percentage points of market share over the last three years.

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