Lyft provides a marketplace that connects riders with drivers through the Lyft App. The platform also offers car rental options for both drivers participating in ridesharing and private customers seeking rentals for personal use. The company emphasizes sustainability by focusing on electric vehicles (EVs), providing cleaner transportation options for both ridesharing and personal driving. Lyft operates in the United States and Canada, two premium markets for ridesharing services. In Q3 2024, Lyft reported 24.4 million active riders and facilitated 217 million rides, reflecting a 15.6% year-over-year (YoY) increase. Gross Bookings rose to $4,108 million, up 15.6% YoY during the same period. Lyft’s vision for profitable growth includes fostering strategic partnerships. A key development in Q3 2024 was a strategic agreement with DoorDash, offering benefits to riders who link their DashPa... Lyft provides a marketplace that connects riders with drivers through the Lyft App. The platform also offers car rental options for both drivers participating in ridesharing and private customers seeking rentals for personal use. The company emphasizes sustainability by focusing on electric vehicles (EVs), providing cleaner transportation options for both ridesharing and personal driving. Lyft operates in the United States and Canada, two premium markets for ridesharing services. In Q3 2024, Lyft reported 24.4 million active riders and facilitated 217 million rides, reflecting a 15.6% year-over-year (YoY) increase. Gross Bookings rose to $4,108 million, up 15.6% YoY during the same period. Lyft’s vision for profitable growth includes fostering strategic partnerships. A key development in Q3 2024 was a strategic agreement with DoorDash, offering benefits to riders who link their DashPass accounts, enhancing customer value and engagement.
Lyft owns and operates multimodal transportation networks in the United States and Canada. The Lyft Platform provides a marketplace that connects drivers with riders through the Lyft App. Transportation options available on Lyft's platform include: Ridesharing Marketplace: A service that matches riders with drivers for on-demand transportation. Light Vehicles Network: A network of light vehicles for various transportation needs. Express Drive Program: Allows drivers to enter short-term rental agreements with Flexdrive or third parties to access vehicles for ridesharing. Lyft Rentals: A service enabling users to rent cars for a fixed period for personal use. Lyft Driver Centers and Auto Care: Offers drivers and riders auto maintenance and collision repair services through the Lyft platform.
The ridesharing market in the United States and Canada has grown at a double-digit rate over the past five years. This growth has been driven by several factors, including the convenience of ridesharing in densely populated cities, shifting preferences among younger demographics, and the introduction of new services by ridesharing companies. Ridesharing companies have increasingly focused on greener solutions and diversifying their offerings to cater to active users. These include delivery services, scooters, and bikes, which have collectively transformed the transportation and delivery industries into a more user-friendly Transportation-as-a-Service (TaaS) ecosystem.
- Comprehensive Transportation Solutions: Lyft provides riders with a variety of transportation options, including ridesharing, scooters, bikes, and a rent-a-car service, all accessible through a single, convenient platform.
- Focus on Financial Stability: Lyft’s commitment to financial performance has resulted in achieving positive adjusted EBITDA ahead of schedule.
- Business-Oriented Platform: The development of a platform tailored for businesses, supported by corporate contracts, has helped stabilize cash flow and diversify revenue streams.
- Stable Market Share: Lyft maintains a strong market share in the U.S. and Canada, competing effectively with its larger rival, Uber.
- Large TAM and Recovery Potential: A significant Total Addressable Market (TAM) in the U.S. and Canada, combined with post-COVID recovery, is expected to drive revenue growth for Lyft.
- Increased Competition: Rising competition in the ridesharing market, driven by new services and platforms, could limit Lyft's growth potential.
- Autonomous Vehicle Disruption: The adoption of autonomous vehicles has the potential to transform the ridesharing market, creating both opportunities and threats for Lyft.
- High Investment Requirements: Significant investments in drivers, scooters, and bikes are necessary to sustain Lyft's business model, posing ongoing financial challenges.
- Pressure from Broader Market Trends: Weak performance in the technology sector, influenced by rising interest rates and a sluggish macroeconomic environment, negatively impacts Lyft's valuation.
- Competitive Disadvantage: Lyft faces stiff competition from Uber, which has greater financial resources and may leverage this advantage to capture more market share in the U.S. and Canada.
- Weakened Macroeconomic Conditions: Slower economic growth in the U.S. and Canada could impact consumer spending and demand for ridesharing services.
- Rising Fuel Costs: Increased fuel prices place additional financial pressure on riders, potentially reducing demand.
- Impact of Inflation: Higher inflation drives up operating costs, including salaries, and could affect Lyft’s valuations and profitability.
- Intensifying Competition: The ridesharing market faces high competition, with risks of new entrants, including autonomous vehicle providers, disrupting the industry.
- Legal and Regulatory Risks: Legal challenges related to Lyft’s business model, including its relationships with drivers and riders, pose ongoing risks to operations.
| Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
|---|---|---|---|---|---|---|---|---|---|
| Lyft Inc | LYFT.O | 7,019 | 2023-12-31 | 18.7 | 15.8 | Unable to resolve all requested identifiers. | 12.1 | 1.1 | 0.9 |
| Uber Technologies Inc | UBER.N | 150,074 | 2023-12-31 | 38.1 | 29.2 | 23.7 | 17.9 | 3.5 | 3.0 |
| Avis Budget Group Inc | CAR.OQ | 3,615 | 2023-12-31 | 22.3 | 10.8 | Unable to resolve all requested identifiers. | 25.3 | 2.3 | 2.2 |
| Aptiv PLC | APTV.N | 13,094 | 2023-12-31 | 9.1 | 7.9 | Unable to resolve all requested identifiers. | 6.6 | 1.1 | 1.0 |
| Tesla Inc | TSLA.OQ | 1,128,079 | 2023-12-31 | 142.0 | 106.6 | Unable to resolve all requested identifiers. | 55.6 | 11.1 | 9.6 |
| Volkswagen AG | VOWG_p.DE | 43,120 | 2023-12-31 | 3.6 | 3.2 | Unable to resolve all requested identifiers. | 5.0 | 0.7 | 0.7 |
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,060 | 2,157 | 3,616 | 2,365 | 3,208 | 4,095 | 4,404 | 5,887 | 6,434 | 6,895 |
| Growth | 103% | 68% | -35% | 36% | 28% | 8% | 34% | 9% | 7% | |
| EBITDA | -696 | -944 | -679 | -755 | 93 | -417 | 222 | 371 | 488 | 637 |
| EBITDA margin | -65.7% | -43.7% | -18.8% | -31.9% | 2.9% | -10.2% | 5.1% | 6.3% | 7.6% | 9.2% |
| Net income | -688 | -911 | -2,602 | -1,753 | -1,009 | -1,585 | -340 | 172 | 145 | 250 |
| Net margin | -64.9% | -42.3% | -72.0% | -74.1% | -31.5% | -38.7% | -7.7% | 2.9% | 2.2% | 3.6% |
| Net debt | -1,106 | -518 | 118 | 651 | 744 | 457 | -867 | -867 | -867 | -867 |
| MktCap | 12,298 | 14,867 | 13,833 | 5,478 | 5,478 | 5,478 | 5,478 | 5,478 |
Historical Multiples
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|---|
| EV/Revenue | 3.4 | 6.6 | 4.5 | 1.4 | 1.0 | 0.8 | 0.7 | 0.7 |
| EV/EBITDA | -18.3 | -20.5 | 156.9 | -14.2 | 20.7 | 12.4 | 9.5 | 7.2 |
| P/E | -4.7 | -8.5 | -13.7 | -3.5 | -16.1 | 31.9 | 37.9 | 21.9 |
