Lyft provides a marketplace for riders and drivers matching them via Lyft App. Lyft offers drivers car rentals for ridesharing, while private customers can get access to car rentals for personal use. Lyft focuses on electric vehicles, providing a cleaner option for ridesharing and driving by customers. Lyft services are available in the US and Canada, two premium markets for ridesharing services. The company reported 20.4mn active riders in 4Q22, up 9% YoY. The company is going to develop its scooter business and other businesses for users, transforming its platform into a mobility hub for users (Transportation-as-a-Service).
Lyft owns and operates multimodal transportation networks in the United States and Canada. The Lyft Platform provides a marketplace where drivers are matched with riders via the Lyft App. Transportation options through Lyft's platform and mobile-based applications include its ridesharing marketplace; Lyft's network of Light Vehicles; the Express Drive program, where drivers can enter into short-term rental agreements with Flexdrive or a third party for vehicles for ridesharing, and Lyft Rentals, a consumer offering for users who want to rent a car for a fixed period of time for personal use, and Lyft Driver Centers and Lyft Auto Care, where drivers and riders can request auto maintenance and collision repair services offered through the Lyft Platform.
The US and Canada ridesharing market was growing at a double-digit rate over the past five years. The convenience of ridesharing in large towns and countries with a high density of population, changing preferences of the young population, and new services added by ridesharing companies all contributed to market growth. Ridesharing companies started to focus on greener solutions and a variety of services for their active users, including delivery options, scooters, and bikes, transforming the transportation and delivery industry into a more user-friendly Transportation-as-a-Service universe.
- Lyft offers a quality transportation solution for riders, including ridesharing, scooters, and bikes as well as rent-a-car service, making it convenient for the rider to make a choice on one platform
- Lyft was focused on financial stability and performance, which resulted in a positive adjusted EBITDA achieved earlier than planned
- Lyft is developing a convenient platform for businesses and has contracts with corporates, stabilising its cash flow
- Lyft has a stable market share in the US and Canada, competing at par with its larger rival Uber
- Large TAM in the US and Canada and post-COVID recovery will contribute to Lyft's revenue
- Higher competition in ridesharing due to new services and platforms will likely restrict Lyft's growth
- The potential use of autonomous vehicles may change the ridesharing market
- Investments in drivers, as well as scooters and bikes, require to maintain Lyft's business model
- The weak performance of the Technology sector, on the back of rising interest rates and weak macro, creates pressure on Lyft's valuation
- Lyft's main competitor in the US and Canada, Uber, has more financial resources to win the market share
- Weakerining macro in the US and Canada
- Increased fuel costs for riders
- Inflation growth affects costs, salaries, and valuations
- High competition and the risk of new rivals, including autonomous vehicle providers
- Legal risks related to Lyft business, including relations with drivers and riders
| 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 | 3,705 | 2022-12-31 | 41.6 | 15.5 | 11.2 | 6.3 | 0.6 | 0.5 |
| Uber Technologies Inc | UBER.N | 68,357 | 2022-12-31 | 53.0 | 23.3 | 14.6 | 2.0 | 1.7 | |
| Avis Budget Group Inc | CAR.OQ | 8,760 | 2022-12-31 | 7.9 | 8.8 | 13.6 | 15.0 | 2.2 | 2.2 |
| Aptiv PLC | APTV.N | 31,674 | 2022-12-31 | 26.6 | 18.2 | 13.4 | 10.6 | 1.9 | 1.7 |
| Tesla Inc | TSLA.OQ | 575,867 | 2022-12-31 | 46.2 | 32.9 | 26.0 | 21.4 | 5.4 | 4.2 |
| Volkswagen AG | VOWG_p.DE | 86,264 | 2021-12-31 | 4.4 | 4.7 | 5.4 | 5.6 | 0.9 | 0.8 |
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,060 | 2,157 | 3,616 | 2,365 | 3,208 | 4,095 | 4,017 | 4,385 | 4,741 |
| Growth | 103% | 68% | -35% | 36% | 28% | -2% | 9% | 8% | |
| EBITDA | -696 | -944 | -679 | -755 | 93 | -417 | -218 | 577 | 925 |
| EBITDA margin | -65.7% | -43.7% | -18.8% | -31.9% | 2.9% | -10.2% | -5.4% | 13.2% | 19.5% |
| Net income | -688 | -911 | -2,602 | -1,753 | -1,009 | -1,585 | -1,077 | -438 | -137 |
| Net margin | -64.9% | -42.3% | -72.0% | -74.1% | -31.5% | -38.7% | -26.8% | -10.0% | -2.9% |
| Net debt | -1,106 | -518 | 118 | 640 | 462 | 744 | 744 | 744 | 744 |
| MktCap | 12,298 | 14,867 | 13,833 | 3,173 | 3,173 | 3,173 | 3,173 |
Historical Multiples
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|
| EV/Revenue | 3.4 | 6.6 | 4.5 | 1.0 | 1.0 | 0.9 | 0.8 |
| EV/EBITDA | -18.3 | -20.5 | 153.9 | -9.4 | -17.9 | 6.8 | 4.2 |
| P/E | -4.7 | -8.5 | -13.7 | -2.0 | -2.9 | -7.2 | -23.2 |
