Covid-19 saw the ride-hailing sector get hit incredibly hard but if Lyft’s (LYFT) Q3 earnings are anything to go by, the easing of restrictions has seen the sector improving.
Lyft recorded a 73% YoY revenue increase, reaching $930-940m, and $67.3m in adjusted earnings — well above Wall Street expectations. The main driver for the figures was a return in rider demand, with rides to airports in main cities increasing by three-fold among active users. Lyft reported a 51% YoY increase in active riders, with revenue per rider reaching an all-time high of $45 — making it odd as to why the company plans to reduce driver incentive schemes in Q4 2021.
why it matters
Lyft stock closed off yesterday at an 8.2% high — the company’s recent results come as a breath of fresh air for investors as the company took some hard-to-swallow pills such as staff layoffs and cost-cutting due to Covid-19.