Ride-hailing leader Uber has its best quarter yet, beating Lyft, which fell far below analyst expectations.
Key Details
- Lyft recently reported lower-than-expected revenue for quarter one, bringing in $975 million in ride-hailing revenue.
- Lyft’s stock also faced its worst day since going public, dropping more than 36% last week—from nearly $17 on Thursday to its current price of $10.37.
- While Lyft struggled, its competitor Uber reported its best quarter yet, making $4.1 billion in ride-hailing revenue, $2.9 billion from Uber Eats and Postmates, and $1.5 billion from Uber Freight, according to The Hustle.
Why it’s news
The two giants in the ride-hailing space, Lyft and Uber, have competed with each other for years, but with new services, Uber is pulling ahead in the race and leaving Lyft behind.
Ride-hailing services were questionable when they first started as people feared getting into cars with strangers, but now it is common practice to call an Uber or Lyft to take someone to the airport or wherever they need to go.
Uber and Lyft have shared the market and competed with each other for years, but Uber stepped ahead and started adding additional services to its lineup, such as food and freight delivery.
The option to get food delivered through Uber Eats and Postmates services and the option to have the company deliver freight has sent it well above Lyft. Uber made $2.9 billion from Uber Eats and Postmates and $1.5 billion from Uber Freight in the first quarter.
While Uber reported its strongest quarter ever, Lyft struggled to meet analyst expectations and fell short, reporting revenue of $975 million.
Lyft’s stock also faced its worst day, falling over 36% last week, landing at around $10 per share, while Uber’s stock sits at $34.30 per share.
Many analysts think if Lyft wants to keep up with Uber, it needs to add its own food delivery service or partner with the already existing DoorDash to increase revenue and give customers more delivery options.