Lyft Shares Fears Uber Will Go Ahead | – #Lyft #Shares #Fears #Uber #Ahead
10 February (Reuters) – Lyft Inc ( LYFT.O ) lost more than a third of its market value on Friday as a bleak outlook fueled concern that the company may be a distant second to Uber ( UBER.N ) in price cuts. The ride-sharing market in North America will squeeze profits.
Analysts say Lyft has the lowest ride volume of any pickup prices compensation said it would not be enough to do.
The two companies have battled for market share emerging from the lows of the pandemic, with recent gains giving Uber its global presence and more diversified business to give it rideshare and USAshows its preference over Lyft aimed at .
Bernstein analyst Nikhil Devnani said, “Uber benefits from having a global rideshare model and international markets USA“He came back faster than,” he said.
“As a larger platform, Uber is not only a rideshare platform for drivers, but also (food and food) more volume with delivery offer can.”
Shares of Lyft hit their worst day ever after falling 36.4%, with 13 analysts cutting their price targets on the stock. Market value of the company as a result of sale 2 billion more than $ and has wiped out almost all of its gains in stock prices this year.
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The stock market saw its worst day since the first quarter results on May 4 last year
On Thursday, Lyft reported earnings and revenue forecasts for the first quarter that fell short of market expectations, a stark contrast to Uber’s strong earnings forecast and better-than-expected earnings.
Canaccord Genuity, driver “This outlook continues Lyft’s trend of slower growth than the broader rideshare market,” he said, adding that improving supply will put pressure on the company’s pricing.
Drivers looking for a consistent stream of income in a weak economy that has allowed Uber and Lyft to cut incentives have returned to ride-sharing companies in recent months.
At Lyft in the fourth quarter driver delivery at the highest level before the pandemic in 2019, Uber’s driver supply was at a record level.
But higher supply means less growth for Lyft in the first quarter prices will see and this will increase the income.
Reuters graphics
The company after Uber dropped its fuel surcharge earlier that month january month prices and analysts downgraded Lyft’s USAhe said, is also a drag on the West Coast because many tech companies there haven’t returned to the office.
“Lyft is shopping hard to lower the price to help with the turnaround and prevent further share loss to Uber,” broker Needham said.
“Despite constructive commentary on demand, lower volume prices compensation We don’t think it can.”
Lyft said in November it would cut 13% of its workforce to cut costs. Uber has so far avoided such a move.
Reporting by Akash Sriram and Aditya Soni in Bengaluru; Edited by Shawnak Dasgupta and Krishna Chandra Eluri
Our standards: Thomson Reuters Trust Principles.
2023-02-13 12:10:22
Source – reuters
Translation“24 HOURS”