lyft Missing Wednesday’s second quarter earnings estimate was overwhelming as it strengthened competition with Uber, weakened U.S. travel demand and dropped stocks by about 9% in post-Bell trading.
Bigger rival Uber Technologyproviding ride, food and grocery delivery businesses around the world, and has issued bright forecasts early in the day thanks to efforts to increase engagement across a unified platform.
Lyft’s revenue for the second quarter was $1.59 billion, missing $1.61 billion, according to data compiled by LSEG.
The company recently completed a nearly $200 million acquisition of European mobility platform Freinow, signed a deal with China’s Baidu 9888.hk, introducing search engine giant Robotaxis into the region.
Lyft on Wednesday also announced a partnership that is expected to begin later this year. United Airlines This allows carrier customers to earn rewards on all Lyft rides.
Partnerships including Doordash And the tracking is already in place. Lyft’s entry into Europe positions the company to expand such collaborations into international markets.
Lyft expects its third quarter total bookings to range from $4.65 billion to $48 billion, well above the $4.59 billion estimate.
With growth stagnating in major US metros, passenger companies are shifting their focus to medium and small auto-dependent cities, taking advantage of new markets to generate revenue.
Lyft recorded a core revenue of $129.4 million adjusted for the second quarter, exceeding the average estimate of $124.5 million.
Current quarterly core revenue forecasts between $125 million and $145 million, primarily in line with Wall Street estimates.
