Lyft, Inc.

Lyft had a mixed quarter and failed to meet the revenue expectations of Wall Street but managed an earnings beat. Active drivers, active riders, and total rides everything was high. Demand was strong. Airport rides, scooters, and bike rides reached a new all-time high. Moreover, Lyft’s business-managed booking also grew and reached a new high with the strong adoption of its B2B offerings, which include Concierge and Lyft Pass. In this quarter, the number of active users who are using Lyft displayed the strongest growth. The company has reduced its operating expenses in the quarter, including limited discretionary spending mainly related to marketing and professional services. Lyft maps have been integrated with CarPlay and Android Auto. This makes driving safer with the reduction of dashboard clutter and results in a better overall driving experience. It continues to ensure that for riders, they provide a full range of ride experiences and price points. The biggest development was Lyft, like its rival Uber, entering the advertising business through the launch of Lyft Media, where people count cabs as vehicles to display ads and engage the riders in advertising materials. This could provide a huge revenue upside for the company in the long term. We provide the stock of Lyft with a ‘Buy’ rating with a revision in the target price.