Lyft, Inc.

After a sharp correction, Lyft saw a recovery in the stock price and its results justified the same. As the demand was up, the company delivered an all-around beat. Rideshare rides were up 27% year over year, and both active riders and rides have reached post-COVID highs. In Q2, the airport use case accounted for an all-time high of 10.2% of all ridesharing trips, while managed Lyft business bookings more than doubled, increasing by 105% from the previous year. In addition, compared to Q1, the number of bike and scooter rides more than doubled. The management also observed improved driver performance. A mixture of new and seasoned drivers contributed to the largest number of active drivers in the past two years. In Q2, organic growth accounted for more than half of new driver acquisitions. Their performance in the second quarter also reflects their sustained ability to operate in complex environments while producing impressive results. They also introduced a media and advertising unit during the quarter. We give Lyft a ‘Buy’ rating with a revised target price.