Uber to steal ride on Lyft in resurgent rideshare market | – #Uber #steal #ride #Lyft #resurgent #rideshare #market
Feb 7 (Reuters) – Uber Technologies Inc’s ( UBER.N ) revenue growth is set to outpace rival Lyft Inc’s ( LYFT.O ) as the rideshare firm’s presence in key markets around the world helps it inflation allows you to cope with pressures. .
As offices reopen and closed borders reopen and strong USA Ridesharing companies are starting to recover from pandemic lows following a revival in travel amid the dollar.
Uber, led by Dara Khosrowshahi, operates in multiple regions and has built a large food and grocery delivery business over the years, while Lyft mainly USAis focused on rideshare.
67, nearly ten times more than Uber’s rival billion Its larger scale, reflected in its dollar market cap, has allowed rideshare firms to spend more on incentives to attract riders at a time when the industry’s recovery is flooding rideshare firms with demand.
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While Lyft is the first to provide earnings insights since rideshare operations began, investors will now focus on key earnings forecasts as the company sets big targets for 2024 – 5 by Uber billion dollars and 1 by Lyft billion dollars.
“Lyft is about to lose Uber’s mobility and delivery network effect … in a world of increasing focus on profitability, Lyft is not delivering,” said MoffettNathanson analyst Michael Morton.
Analysts expect revenue growth of 19% for Lyft and 47% for Uber in the fourth quarter, according to Refinitiv data.
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Analysts at UBS reported that the time drivers spent on the Lyft app decreased in the fourth quarter, while for Uber driver they drew attention to the data showing the increase in the download share of their applications.
“Looking at driver time data based on 2 years of growth, we’re more concerned about Lyft losing market share … we’re more concerned about Lyft needing to invest in incentives,” said UBS analyst Lloyd Walmsley.
Uber’s, which accounts for more than a third of its revenue food and the delivery segment has so far been resilient in a weakening economy, but faces risks from declining consumer spending.
Uber’s market cap is about ten times Lyft Uber’s market cap is about ten times LyftFUNDAMENTALS
** Analysts expect Uber’s fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be $614.79 million dollars and expect to report an adjusted loss of 18 cents per share.
** Lyft likely adjusted EBITDA of 91 million USA dollar, up 22%, and will report adjusted earnings of 13 cents per share
WALL STREET SENTIMENT
** Out of 47 analysts, 14 rate Uber a strong buy, 28 a buy and five a hold.
** Of the 46 analysts covering Lyft, five have a “strong buy,” 16 “buy,” 24 “hold” and one “sell” rating.
Reporting by Nivedita Balu in Bengaluru; Edited by Shounak Dasgupta
Our standards: Thomson Reuters Trust Principles.
2023-02-08 03:39:03
Source – reuters
Translation“24 HOURS”