Latest news with #LyftInc
Yahoo
2 days ago
- Business
- Yahoo
BofA Still Sees Trouble on the Road for Lyft (LYFT)
On June 4, Bank of America Securities analyst Mike McGovern reiterated a Sell rating on Lyft Inc. (NASDAQ:LYFT), with an unchanged price target of $12. While the company has reported some encouraging operating metrics, including record highs in active riders and gross bookings, McGovern remains cautious about its longer-term outlook. His concern centers primarily around rising competitive pressure, especially from emerging autonomous vehicle (AV) platforms such as Waymo and Tesla. These players are expanding their reach and could begin to erode Lyft's market share as they scale up. A busy metropolis street filled with commuters using the company's mass transit ridesharing services. Although Lyft has made some progress with its AV program and fleet management, it still lags behind key competitors in creating strong partnerships. McGovern views this gap as a weakness, particularly in an environment where technology-driven differentiation is becoming increasingly important. While the company has made some operational improvements and benefitted from product innovations, the analyst expects external threats like autonomous vehicle (AV) disruption to overshadow near-term gains. These concerns support his Sell rating and reflect a more cautious stance on the company's competitive positioning. Lyft Inc. is a transportation technology company that operates a peer-to-peer ridesharing marketplace in the United States and Canada, connecting drivers with riders through its mobile platform. In addition to ridesharing, Lyft offers bike and scooter rentals, car rentals for drivers, and access to autonomous vehicle services. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Lyft's Cash Flow Soars - But So Has the Stock - Is it Still a Buy?
Lyft Inc. (LYFT) produced strong Q1 results with record trailing 12-month (TTM) free cash flow in an after-hours earnings release on May 8. Since then, LYFT stock has skyrocketed. It may have discounted the good news. But if LYFT keeps making high FCF margins, it could rise further. LYFT closed at $17.21 on Monday, May 12, up from $12.58 on May 7 (+36.8%) before the earnings came out. It's now up to where it was before the sell-off in April, but still below its 6-month high of $18.59 on Nov. 11, 2024. But does it still have more to go? Let's look at the results. Strong Free Cash Flow Generation Lyft reported that all its growth metrics were significantly higher than last year, and most were equal to or just slightly lower than last quarter. Its supplemental data deck shows these stats for gross bookings, quarterly rides, and riders. For example, quarterly revenue at $1.45 billion was up +13.6% YoY, but down slightly from Q4 revenue of $1.55 billion (-6.45% QoQ). Moreover, even though adjusted EBITDA (a measure of cash flow not including capex and working capital changes) was down slightly QoQ, its free cash flow (FCF), which includes these flows, was significantly higher. This can be seen in the table on page 16 of the deck: It shows that in Q1 Lyft generated $240 million in FCF. That represents an amazing 19.4% of Lyft's Q1 revenue, vs. just 9.0% in Q4 and 9.96% in Q1 2024. In other words, its FCF has doubled, indicating the company has been squeezing more cash out of its operations. (In all fairness, the dip in Q4 FCF and FCF margins may have been an anomaly.) In fact, over the trailing 12 months (TTM), LYFT has generated $920 million in FCF as seen on page 13 of its deck. This has been growing exponentially. It also represents 15.4% of almost $6 billion in TTM revenue. As a result, if LYFT continues to generate between 15.4% and 19.4% FCF margins over the next year, we can expect that FCF will continue to soar. We can assume that it could come in at least 18% of the FCF of the estimated sales forecasts from analysts. For example, Seeking Alpha shows that 40 analysts have an average revenue 2025 forecast of $6.48 billion. And for 2026, they forecast $7.20 billion in sales. As a result, FCF estimates are: 18% x $6.48 billion (2025 revenue est.) = $1.1664 billion FCF 2025 18% x $7.20 billion (2026 revenue est.) = $1.296 billion FCF 2026 This can help us set a price target, using an FCF yield metric. LYFT Stock Price Targets For example, LYFT now has a $7.234 billion market capitalization. That means that its TTM FCF of $920 million represents 12.7% of that market value (i.e., its FCF yield). That is the same as a multiple of 7.87x FCF (i.e., 1/0.127 = 7.874). As a result, applying a 12.7% yield to the FCF forecasts results in a market cap forecast: $1.1664 billion FCF (2025 est.) / 0.127 = $9.165 billion mkt cap $1.296 billion FCF (2026 est.) / 0.127 = $10.204 billion mkt cap target So, over the next 12 months (NTM), LYFT could be worth between $9.1 billion and $10.2 billion. That is between +26.7% and +41% higher than its present $7.2 billion mkt cap. That implies its price target is still higher than today's price, i.e., between $21.81(i.e., 1.267 x $17.21) and$24.27 (1.41 x $17.21) per share, or $23.04 on average. Just to be conservative, let's apply a higher FCF yield (i.e., a lower multiple). For example, using a 15% FCF yield (i.e., a 6.67x multiple): $1.1664b x 6.667 = $7.78 billion market cap (2025 est), +7.5% over today $1.296b x 6.667 = $8.64 billion mtk cap (2026 est.), + 19.4 % higher The price target range for this more conservative forecast is $18.50 per share (+7.5%) to $20.55 (+19.4%), or $19.53 on average. In other words, LYFT is worth somewhere between $19.53 and $23.04, depending on the FCF multiple used (i.e., 7.8x or 6.7x). Analysts seem to agree. For example, 38 analysts surveyed by now have an average price target of $22.00 per share. The bottom line is that LYFT still has further to go on the upside, especially if its free cash flow and FCF margins remain strong over the next 12 months. How to Play LYFT Stock It's not uncommon for a stock that has risen so far so fast to take a beat. Normally, I would recommend shorting out-of-the-money (OTM) puts to set a lower buy-in target. But it may make sense to just watch things here. For example, the June 13 expiration put option chain shows that the $16.00 strike price, 7% below Monday's closing price, has a midpoint premium of 46 cents. That represents a cash-secured short-put yield of 2.875% over the next month (i.e., $0.46 / $16.00 = 0.02875). The problem is that Lyft stock could drop over the next month simply from profit-taking. This is even though it's worth more, as I have shown, and despite its low delta ratio of 27.5% and a $15.54 breakeven point (i.e., $16.00-$0.46). That is 9.7% below Monday's close of $17.21. As a result, an investor might have a chance to make the same or better yield at a lower strike price. For example, if the $15.00 strike ends up with a 40 cents premium (up from 22 cents), the short-put yield is 2.667% and the breakeven point is $14.60 (i.e., -15% lower). So, I recommend watching LYFT over the next 2 weeks and setting a buy-in target price. Over the next 12 months, there is a good likelihood of making a profit on LYFT at today's or a lower price.
Yahoo
11-05-2025
- Business
- Yahoo
Why Lyft, Inc. (LYFT) Soared On Friday
We recently published a list of In this article, we are going to take a look at where Lyft, Inc. (NASDAQ:LYFT) stands against other Friday's best-performing stocks. The stock market edged lower on the last day of the trading week as investors sold off positions to mitigate risks from the anticipated trade talks between the US and China this weekend. The Dow Jones and the S&P 500 both fell by 0.29 percent and 0.07 percent, respectively. In contrast, the tech-heavy Nasdaq ended flat. Beyond the major indices, 10 companies traded strongly, finishing with as much as double-digit gains, thanks to the continued positive earnings performance and optimistic outlooks. In this article, we name Friday's 10 best-performing stocks and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A ridesharing passenger and driver in a car, looking out the window in anticipation of their destination. Lyft Inc. saw its share prices soar by 28.08 percent on Friday to end at $16.65 apiece after reporting profitability in the first three months of the year. According to the company, it achieved a net income of $2.6 million during the period, a reversal from the $31.5 million net loss in the same period last year, as revenues grew by 13.5 percent to $1.45 billion from $1.277 billion year-on-year. Gross bookings also grew by 12.7 percent to $4.28 billion from $3.69 billion in the same comparable period, supported by the increase in the number of active riders and ridership. For the second quarter, Lyft, Inc. (NASDAQ:LYFT) said it expects ridership to grow mid-teens year-on-year. Gross bookings are also targeted to settle between $4.41 billion and $4.57 billion, or a 10 to 14 percent year-on-year growth. 'With our expansion into new demographics via Lyft Silver and into Europe with our planned FREENOW acquisition, we're putting all the pieces in place for sustained, market-leading performance,' said Lyft, Inc. (NASDAQ:LYFT) CEO David Risher. Overall, LYFT ranks 1st on our list of Friday's best-performing stocks. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LYFT but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Why Lyft, Inc. (LYFT) Skyrocketed This Week
We recently published a list of . In this article, we are going to take a look at where Lyft, Inc. (NASDAQ:LYFT) stands against other stocks that moved the market this week. The stock market edged lower week-on-week, as cautious investors repositioned their portfolios ahead of the United States and China's high-stakes negotiations on trade policies that have for months dented global economies. On a week-on-week basis, the Dow Jones was down by 0.16 percent, the S&P 500 dropped 0.47 percent, while the Nasdaq dipped by 0.27 percent. Beyond the major indices, 10 companies bucked a wider market decline, with gains skyrocketing in just a week's trading. In this article, we name the 10 top-performing companies this week and the primary reasons that bolstered their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. The stocks were chosen based on the highest percentage increase in closing prices on May 9 as against their prices a week earlier, or on May 2. A ridesharing passenger and driver in a car, looking out the window in anticipation of their destination. Lyft Inc. grew its share prices by 31.62 percent week-on-week, to end at $16.65 on Friday versus the $12.65 a week earlier after swinging to profitability in the first three months of the year. According to Lyft, Inc. (NASDAQ:LYFT), it achieved a net income of $2.6 million during the period, a reversal from the $31.5 million net loss in the same period last year, as revenues grew by 13.5 percent to $1.45 billion from $1.277 billion year-on-year. Gross bookings also grew by 12.7 percent to $4.28 billion from $3.69 billion in the same comparable period, supported by the increase in the number of active riders and ridership. For the second quarter, Lyft, Inc. (NASDAQ:LYFT) expects ridership to grow by mid-teens, as well as gross bookings to settle between $4.41 billion and $4.57 billion, or a 10 to 14 percent growth year-on-year. 'With our expansion into new demographics via Lyft Silver and into Europe with our planned FREENOW acquisition, we're putting all the pieces in place for sustained, market-leading performance,' said Lyft, Inc. (NASDAQ:LYFT) CEO David Risher. Overall, LYFT ranks 4th on our list of stocks that moved the market this week. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LYFT but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Q1 2025 Lyft Inc Earnings Call
Aurelien Nolf; Investor Relations; Lyft Inc John Risher; President, Chief Executive Officer, Director; Lyft Inc Erin Brewer; Chief Financial Officer; Lyft Inc Brad Erickson; Analyst; RBC Capital Markets Ken Gawrelski; Analyst; Wells Fargo Eric Sheridan; Analyst; Goldman Sachs Michael Morton Morton; Analyst; MoffettNathanson Nikhil Devnani; Analyst; Bernstein Stephen Ju; Analyst; UBS Securities Douglas Anmuth; Analyst; JPMorgan Chase Steven Fox; Analyst; Fox Advisors LLC Operator Good afternoon and welcome to the Lyft first quarter 2025 earnings call.(Operator Instructions)As a reminder, this conference call is being recorded. I would now like to turn the conference over to Aurelien Nolf, Investor Relations. Please go ahead. Aurelien Nolf Thank you. Welcome to the Lyft earnings call for the first quarter 2025. On the call today, we have our CEO, David Risher, and our CFO, Erin with this call and going forward, our full prepared remarks will be available on the IR website before the call, and we will use this time to answer more of your questions. We'll make forward-looking statements on today's call relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace and statements are subject to risks and uncertainties that could cause the actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials and recent SEC filings. All of the forward-looking statements that we make on today's call are based on our beliefs as of today, and we disclaim any obligation to update any forward-looking statements except as required by today we are going to discuss customers. For Rideshare, there are two customers in every car. The driver is Lyft's customer and the rider is the driver's customer. We care about discussion today will also include non-GAAP financial measures which are not a substitute for GAAP results. Reconciliation of our historical GAAP to non-GAAP results can be found in our earnings materials which are available on our IR with that, I'll pass the call to David. John Risher Thank you. everyone, and thank you as always for joining. Q1 2025 was our strongest Q1 ever. We're innovating for drivers and riders. We're expanding outside the US in a meaningful way, and our partnership strategy continues to fuel our momentum. Lyft had year-on-year growth across regions, across modes, and across use cases, resulting in a record Q1 for active riders, rides, and driver at our financials, we delivered Q1 records in gross bookings, adjusted EBITDA, and free cash flow. A note on gross bookings. This was Lyft's 16th consecutive quarter of double-digit year-on-your growth, demonstrating the resilience and momentum of our customer obsessed we approached nearly $1 billion in cash generation over the last 12 months that demonstrates our winning formula of growth with discipline. It's this financial strength that has enabled us to increase our share repurchase program to $750 million while maintaining the ability to invest in our most promising growth our expansion into new demographic via Lyft Silver, and into Europe with our FREENOW acquisition, we are positioning ourselves for sustained growth to build on our incredible momentum. I am so impressed and proud of the work our team has done over the last two years to build a strong foundation fueled by customer obsession and operational excellence. I am very confident we are well positioned for 2025 and now, with that, let's get to your questions. Operator (Operator Instructions)Brad Erickson, RBC Capital Markets. Brad Erickson Hey, thanks for taking my questions. First, just talk about the pricing environment. What are you seeing, and maybe just the puts and takes between sort of things within your control versus things out of your control? And then second, just on insurance, I know it's a little early to talk about this. But maybe any update, you can give on how you're thinking about that adding into the pricing formula through the year? Thanks. Erin Brewer Hi Brad, it's Erin. Why don't we start with pricing? I'll start there and turn it over to David, and then we can come back and I'll chat about insurance. So let me just start with some facts around pricing. Obviously, we talked about it last quarter about some dynamics in the market generally resulting in lower prices in the US, which we started to see late in the fourth quarter. And as of our last earnings call, were persistent at that time. So here we are today, average prices in Q1 were still lower than average prices in the fourth quarter, although they were up modestly year over year. David? John Risher Yeah, I'll just say, to remind everyone on the call, that our pricing strategy remains the same. It's always to be competitive for sure, and then to be reliable. And of course we've talked in the past about how we're trying to sort of get prime time out of the system, introduce features like price lock and so forth to sort of even further increase that reliability. But really no change and as Erin has said, modest differences for what we've seen in the past, but we feel good about where things are. Erin Brewer And then Brad, back to your second question around insurance. We continue to move forward with our programs, everything that we work on across our risk team here at Lyft. We highlighted a whole bunch of that at investor day and have talked about it since, but it's just continuing that momentum. We have unique industry leading capabilities. We are continuously innovating to make our platform safer through technology, products, innovated things like the Smooth Cruiser Score, which gives drivers feedback on how they're doing and how to provide better rides. We will continue that. We are recognized by our partners, our long-standing partners for all of those advancements, and so we feel really good about our heard us talk about our renewal, our 10-1 renewal, as we've got a six month cycle, no new updates there, it's reflected in how you see our guide in the second quarter. So I don't have anything specific to to call out there. We continue to make great progress. We've got a great team and we've got great long term partnerships. Brad Erickson Thanks. Erin Brewer I think we'll take the next question. Operator Ken Gawrelski, Wells Fargo. Ken Gawrelski Hi, thank for taking the question. I really appreciate it. I'm curious, just a couple of things. One is you -- the other guys, I think as you refer to them, has talked a lot about affordability initiatives in the US. I'm just curious just as you think about the go forward and and the many innovations you've rolled out on the product side, how you're thinking about just the go-forward there in your positioning in the market?And kind of from a pricing standpoint, how you -- what the pricing outlook is for the remainder of the year? And then in the second, if I may, please, you made an announcement to enter Europe. Could you just talk to us a little bit more -- and you're expanding in Canada. Could you just talk a little bit about your broader international ambitions? Should we think of this as the extent of it for the next select period of time or could we see more? Thank you. John Risher Sure, yeah, good questions, both. So on pricing, I don't have much more to say than what Erin said, but maybe zooming out just a little bit. I mean, look, you in a marketplace like this, you all -- let me actually step way back. You always want to be able to provide the best price you possibly can. I mean, let's be clear, that's always I feel, good about where our pricing is, and I don't see it being a major sort of area of focus or competition. And really all I mean by that is, like our -- as you mentioned, innovation is kind of a big thing, right? And at a certain level, there's only so much you can do with pricing. The market sets a clearing price, millions of times a day, and we sort of follow the markets lead on that as they say we're competitive and once you sort of have that and you kind of take that a little bit off the table, then it becomes much more interesting to think about things like the silver or price lock or the earnings guarantee for drivers or whatever you can do to really drive preference for your for your platform. And I think it's really because we've been so focused on that customer obsession and the operational excellence required to continue to execute on that we've seen our growth be powered, sort of independent of pricing sort of bouncing around a little maybe not much more to say about that. On international, you're right to point out that we've seen great growth in Canada, roughly doubled year on year and now up I think another 50%. In fact, I think literally just today, we opened up the funnel for a driver on boarding in Quebec, the province of Quebec, which just gave us authorization to expand there later this year. So super excited about then you know looking at that, which obviously gave us a certain amount of confidence that our customer obsessed formula can work outside the United States. We acquired FREENOW, and I can talk more about that if you're interested. But I don't think I'm going to be able to say much beyond that just now. Obviously, that deal hasn't even closed. It won't until the second half of the year. So a bit premature to think about further international expansion.I will say more likely than not, the near term focus will be kind of infill in the nine countries where FREENOW is operating rather than think about further expansion. But that's not a never say never. It's simply the focus right now is on making sure FREENOW acquisition exceeds it's already great potential. Operator Eric Sheridan, Goldman Sachs. Eric Sheridan Thank you so much for taking the question. Maybe I'll just ask one. You obviously made the announcement with May Mobility, and we're seeing a lot of different announcements in the broader AV landscape. We'd love to continue to sort of click down on how your views are evolving in terms of going to market with partners and what you think that might do in terms of the supply and demand dynamic in these cities where you bring that type of supply into your ecosystem? Thanks so much. John Risher Yeah, sure, I'll take this one there. Good to hear from you. So, yeah, let's go -- let's start exactly where you start with May mobility. So we're super excited about that partnership. It's scheduled and on track to launch this summer in Atlanta, which is I think it's going to be very interesting and very instructive for us, of course, because it'll help us get feedback on what happens in markets when we do this. And then next up, of course, is the partnerships that we've announced in Texas coming next year. And that'll also involve a financing partner, Marubeni, which sort of maybe allows me to talk a little bit about the whole value chain for just a second and then get back specifically to your question.I feel maybe -- I'll just start by saying again, AVs are an absolute extraordinary opportunity for us, absolutely extraordinary opportunity. And it's because it brings a whole new supply, as you're mentioning, and frankly broadens the portfolio, right? You now have use cases that maybe people aren't excited about before on Rideshare that now they get very excited about whatever those might look like. And it's a good product and it's a safe product, and so on and so forth. So super excited about how we can expand the market and open us up to new a whole set of activities that has to happen all the way from the equipment manufacturers have to be on board, the OEMs have to be on board. Financing has to be lined up again. I'll mention Marabeni, our partner who's in the business of fleet financing and fleet ownership. That ownership piece is quite important. Someone's got to own these things, and hopefully, it's someone with a good capital structure and so on and so on. So that's where they come there's the whole fleet management piece which we've talked about several times. And again, since we're on the topic, I would encourage anyone who hasn't read about the post we published a couple of weeks ago on FlexDriver subsidiary. That does fleet management, I'd highly recommend you read it because it gives you a strong sense of why fleet management matters so much. I mean, anyone can have a couple of cars, maybe even 50 cars and sort of keep them then, you start talking about thousands of cars, and you're talking about a lot of maintenance, a lot of repair, a lot of uptime, monitoring, a lot of cost control, and so on and so forth, and that's what FlexDrive provides us. We do that to the tune of 10,000 to 20,000 cars every year on a platform already. And we're super excited about welcoming AVs to then, of course, you have the marketplace piece that's supply demand management, ETA estimation, and so on and so forth, and then pricing and all the outbound marketing to generate demand. Okay, so that's the whole value chain. Again, we've written about this. I recommend you read that paper as well just for back to the end of your question. I mean, our general view is the more supply the better, right? We think it'll come from a lot of different partners, May is an early one. Mobily, of course, is another tech provider. They're the ones that are providing the tech in Texas for us. There are companies that frankly we've never even heard of yet, that'll be providing this technology over the coming years. And then you have the current market leaders as well. And our strategy through all of this is the same, which is we want to be the absolute best way for an AV supplier of any type to monetize those assets on the platform. And that's what we're setting up for and we feel very confident in our position. Operator Anne Black, Deutsche Bank. Hi, thanks. This is Jeff on for Anne. Thanks for taking our questions. This is a follow up to that on AV. Kind of looking beyond getting the supply on the platform, what do you think the impact will be to pricing and frequency membership, as AV scale longer term? And also it would be great to hear your thoughts on the Waymo Toyota partnership for personally owned vehicles. It would be great to get your perspective if this could, impact list, and I guess the transportation market more broadly. Thank you. John Risher Yeah, great questions both. I'm sorry, the second one I'm very clear on, the first one again, say that one more time. It just kind of beyond (multiple speakers) frequency membership. John Risher Of course, yeah, of course so. I mean, we can give you our views, but I will tell you that probably the dominant thing to take away on that is a little too early to tell. And the reason I say that is because if you look at the markets where AVs are operational right now, you see a San Francisco, you see a Phoenix, you see in LA, you see in Austin as an example. And the dynamics in each of these is slightly some markets, AVs are actually priced as a premium product, in some markets are priced at a little bit of a discount. In most markets, the service levels are actually not as good as traditional Rideshare, which you can understand why that might be that the ODDs are somewhat limited. And even when there's dense supply, those companies don't necessarily or it's really that company. Doesn't necessarily have the same sophistication with supply demand balancing and so forth. So it's very hard to know over the long term, what what's going to the bet that generally people are making is that over time this will increase supply overall and decrease costs to operating a network like this. And that seems like a reasonable assumption for obvious reasons. But that could be quite a long ways away. It really could, for example, insurance, people think a lot about insurance. Gosh, are safe, that's true. But on the other hand, they're very expensive to repair. That's also true. They still do get in accidents because other people cause accidents utilization rates are very unknown, the profitability of these on a unit basis per car basis. We will have a lot to do with whether they're utilized, 14 hours a day or 18 hours a day. So and then -- sorry, back to insurance, I neglected to mention insurance companies tend to be quite conservative when it comes to pricing insurance. Particularly early on, they say they like to have five to seven years of data, which means and sort of I'd say their incentive is maybe even to overprice at the beginning so they don't get caught upside I might not be a very satisfying answer, but I think that's kind of the truth. The long term, I would expect again that it'll be very sort of expansionary and maybe bring prices down. But I don't bet on that in the super short term. I think more interesting in the short term is just how differentiated, they are from the existing offering and therefore market the issue of individual ownership and the particular Waymo Toyota thing, I won't probably mention or talk about too much. But I think what it does is it validates that there are going to be a couple of phases of a adoption. The first, of course, is very pilot and trial, and that's obviously where we are time, there will be owners of fleets, right? And today, those owners typically are the people who are designing and building the tech, we all being, obviously, of the day, they design the tech, they buy the cars from the Jaguar and then they own them over time, you wouldn't expect that necessarily. You would expect new companies like Marabeni and others, and even companies like Lyft at a small scale, to actually want to own the assets and manage the assets and so forth. But then I think in the medium and long term, you get to a very different and next level where individuals or maybe very small fleet owners of small groups of cars own cars. And we're already planning for that. It's very this is why I think our Mobily partnership is so important. Again, Mobily, they're the driver assistance technology that's in 800 different car models right now. So they have very good relationships with the OEMs, but it's level 2 kind of lane assist and so forth. But they have a very clear strategy and a very clear roadmap, and again, we're dependent on that roadmap as we roll out in Texas with them to get to level 4 and level idea there is that that technology won't just be in bespoke cars, one or two OEMs or even one or two platforms within one or two OEMs, but rather ultimately universally available. And as I've said before, I think there will come a time, you'll call it the next 10 years, probably not much sooner than that, but 10 years, where buying a car without AV will be like buying a car without a radio. It'd be -- or actually I think a better analogy is buying a stick shift car. I think that's a better could buy a stick shift today. I happen to have one, they're awesome, and they're super fun to drive, but they're definitely the thing that you drive because you like to, not because you not -- it may not be your best commuter option, every single I think it'll be kind of like that. There will be manual cars just as there are today, but increasingly AV will be everywhere. And in that world, this idea of Lyft ready, every car being Lyft ready, so that when you buy it, you can put it on the Lyft platform and have it generates revenue have it sort of self-monetized, you might say, becomes very appealing. So that's the world we're already building to. We know it's a long way away, but we also -- we have a very long-term view. So I think you have to, again, for all the sort of short term buzzers and the flurry of press releases and so forth, that's one thing. But I think sort of -- you have to have your eyes on the long term on this. Operator Michael Morton, MoffettNathanson. Michael Morton Morton Hey, good evening. Thank you for the question. To the extent you can talk about it. I know it's just announced, but I wanted to hear your thoughts on the ability to invest behind FREENOW, and then maybe how you're thinking about the business mix between taxis and Rideshare for FREENOW going forward versus where that mixture stands today?And just quickly, David, as pricing increases subside, I'd love to hear about any changes you're seeing in consumer behavior that might lead them to spend more per month, just because there's less sticker shop, right, if you open, you look at your morning commute, wow, it's too much. But then you start opening, it's not going up as much and they actually end up using it more than they would have in their prior budget. So if you're maybe seeing more shopping engagement at this point, maybe they haven't like transitioned into actual conversion yet, but anything there would be very helpful? Thank you. John Risher Super perceptive questions, Michael. So why don't I do this? Maybe I'll talk just super briefly about kind of how we see FREENOW and sort of that mixed question you talked about. Maybe I can pass it to Erin to talk about investing behind it to the extent we can say anything, which to be honest, won't be much. She's smiling at me right now, which is fair. And then I'll come back to talk to about that communication and what we're seeing briefly, with FREENOW, maybe a thing to remember is that it's -- so it is a taxi-first marketplace. And actually, I want to talk about this for a second because, I think people's intuition can be a little bit sort of overweighted by maybe what you see in the New York City when you think of taxis, for example. So in Europe, just to be super clear, the taxi tends to be a sort of a premium product in most parts of Europe. You might think of the London Black cab, you might think of taking a Mercedes from the airport in drivers oftentimes are long term drivers. Some of you might know, I lived in Barcelona for many years. Many of the taxi drivers I had, had been doing it for years and years. And so it's a very sort of stable, very important part of the landscape an enormous part of the ride-hailing industry in Europe, ride-hailing data broadly, including taxis and personal vehicles and everything else on the street, raise your hand, all the things. It's roughly I think a EUR40 billion market. But roughly half of that is still offline and it's quite traditional. It really is -- it's people picking up the phone and calling a taxi and literally just like secret personal experience here. This is exactly what I did when I lived in Europe. As much as I like the tech, there's their habits that are sort of hard to part of that -- and the reason for that sort of stasis is there just hasn't been a lot of innovation on the sort of taxi side, in particular, in part because there's so many different individual fleet operators that don't really have the scale or the capital to expand what they're doing. So we FREENOW brings that, and it's why they've been so successful. It's why they really are the dominant player in that we continue to believe that that's going to be the interesting point, as I say. It's sort of a higher -- when you ask people, maybe ask a friend in Paris at some point, how they feel about Rideshare versus taxies, and often they'll talk about how Rideshare feels a little bit like a sort of a a less than experience because taxis feels like a more than experience, and we really want to lean into country by country, things differ. There are some countries where personal vehicle kind of Rideshare as we think of in the United States is not legal. There's somewhere anyway -- so country by country, FREENOW in 9 countries, each country has slightly different dynamics. But I wouldn't expect the overall approach really to change very much. They've got a very good model. And we can bring a lot to that model, a lot, there's a lot we know about the way pricing works and market dynamics and so forth that, because of our scale and our history we've got. And vice versa, they'll bring up a lot of fleet management expertise stuff because of course, every one of these taxi operations typically needs another fleet manager to last thing I'll say there, I kind of alluded to earlier, is I think to the extent that there's, work to do and investments and stuff, and I'm not going to speak much about this. But there may be some infill opportunities within the markets we're already working in. I think, maybe I can turn it over to Erin at this point. Erin Brewer Yeah, so you know what I'd say, look, in FREENOW, we found a partner to -- we see opportunities to immediately fuel growth, unlock potential for partners, level up the experience for drivers and riders alike. So we're excited about it. It obviously doubles our addressable market overall. So the strategic purpose of this acquisition is fully aligned with the strategy that we outlined at Investor Day. Very specifically we said we would -- as part of our capital strategy, responsible investment and attractive growth and margin expansion opportunities was important to us. This fits that first step, however, is to close the deal. So we expect that to happen sometime in the second half of the year, and then, we'll start some foundational integration. And we'll continue to evaluate opportunities for growth over time. So that's what I would add there. Maybe I'll start with the second part of the question, which is around you know what I would say, Michael, is, affordability is not something that's new to Lyft. If you look at our overall product portfolio, this is something that we've emphasized in terms of a mode for every mood, so to speak, for a period of time. And so you think about things like Wait and Save, obviously, which has been a great feature overall for the company. And that's certainly not a monolith if you think about the ridership, right?Wait and save riders, use the mode about a third of the time. They tend to take about two extra rides. So again, affordability is not new, and I think that the breadth of our portfolio and even the growth that we highlighted in some of our prepared remarks at the higher end of our portfolio is a strength, and that's where you're seeing more than 16% rides growth in the quarter, really proud of that. David mentioned some of the stats in his opening I don't know, David, do you want to add anything to the affordability question? John Risher I'll add in sort of -- and maybe exactly where kind of Michael was also going. I think what's so interesting about this idea of affordability -- and you actually, you touched on this, Michael, is people think of it, I think, sort of, in a maybe small way as, oh well, lower prices. Well, it's -- sure, I mean, obviously, again, you want a great cost position, you'll remember we took $330 million out of our cost position a couple of years ago to be able to afford to give great prices and great earnings to to drivers and so at a certain point, that becomes a little bit kind of just baseline, and then you have to start to innovate on top of that. And I do think price lock is such a good example, and I'll tell you why. So commute is now our largest use case. And what that -- remember 10 years ago, commute was 0% of 0% of 0% Rideshare.I mean, it didn't make sense, right? And now, it's a third of our rides. So we're talking about an enormous part of people's daily lives. And then you think, well, why isn't everybody doing it? Remember 150 billion rides a year, of which some gigantic number of commuter rides and a fraction of a fraction of a fraction are still on Rideshare. And so much of it is all the irritating things that rides are sort of introduced over the years or didn't quite get right, like surge pricing being the single biggest one, so annoying, right? You're doing the same thing every day. Why should you pay something different every day? No one wants that. That's the other hand, gosh, is it great to sit in the back seat and be able to text or start your work or make a phone call or, whatever, say goodbye to your spouse, after you left because you didn't get a chance to say goodbye. Well, whatever it is you want to do. So it's a great service, but you got to take away some of the funny stuff.I thought does that. And I can tell you that we're the price like membership, we introduced it a couple of quarters ago. It's now up 21% compared to Q4. And very interestingly, the retention rate is super high. It's up greater than 70%. I think we've said 70% in the past. It's up to about 75% right now, which means that once people sign on, they do it again. And that's a form of affordability, right? It's sort of a normalization. It's kind of like, okay, the price is not going to bounce around. I kind of understand what it it's a little higher than I want it to be. I don't know, whatever, but at least I can understand what it is every day, and I begin to understand the value, and little by little by little by little, it becomes part of more and more people's lives. So that's very much the way we think about these things, and we like when we see a product like this have such product market fit, because it shows that we've discovered something pretty important. Michael Morton Morton Thank you. Operator Nikhil Devnani, Bernstein. Nikhil Devnani Hi, thank you for taking my questions. I had two, please. First, on the taxi initiative you're rolling out in the US, do you think this can accelerate your growth in '25 and '26? Just trying to get a sense for the scale of it. And is there a long process to bring more taxis online and more markets or do you think this is something where you can move fairly quickly with new cities beyond St. Louis?And then my second question is around AV partnerships. Do the deals that Uber is striking, do they actually accelerate your ability to onboard partners because there's a playbook for these AV providers to rinse and repeat, so to speak? Or do you feel like you need to be the first one in the door because fleets are still really small and experimental, so there aren't enough cars to go around just yet? Thank you. John Risher Yeah, hey, Nikhil, two good questions. Let me -- I'll touch on both.I think. Well -- and I'm sorry, I took -- I know I'm thinking about your last question so much that I've already forgotten your first. It's the second time we've done today. Say the first one more time. Nikhil Devnani Just on the taxi initiative in the US and the roll out of more cities. John Risher Yeah, of course, sorry about that. The two part question is always tricky. So on that, look -- as you said, so just to sort of level set with everyone. Yeah, we started in St. Louis, and it's great. I know you asked specifically about is it going to accelerate your growth. I'm not going to comment on that what I will say is when we look at our strategic initiatives of the course of the year, and we set these at the end of last. Expanding our sort of access to fleets was quite important. And it's important for a couple of diversity of supply really matters. It matters at the sort of one end, the taxes. We're doing it also when it comes to what we call the high margin modes, particularly the black cars, which also tend to be fleet cars. They have good economics, typically they insure in a different way from normal insurance with us, so that's all good.I'm not going to -- we've only talked about St. Louis so far, so I won't speculate beyond that. But I will say it is an important part of what we're doing in the US. And again, when you hear the FREENOW acquisition, you understand that that, obviously their expertise is going to come in handy for the AV side, it absolutely is not the case that you have to be first, it just isn't. And the reason I say that is because even if fleets are limited, which is sort of maybe the premise behind the question. Well, I guess you sort of put it both ways, right? You said either there's a playbook or there's a limitation. I would say, first of all, every AV provider has a very strong incentive to have multiple partners. I mean, it's just clear. No one wants to be beholden, right? So that's why you don't see anything that looks really exclusive, because that would just be sort of be supply constraints from time to time, of course. And so, maybe one person will get a little ahead of the other for a certain period of time in a certain city, but I think that's very temporary. I think much more interesting if I'm an AV supplier of equipment or what have you is who is the partner who can better monetize, and frankly, that I can sort of work with better. Who brings more to the table maybe, it could be any number of things.I won't characterize it too much. But obviously, we're very excited about the unique asset we have. We have the only sort of integrated fleet management solution to Rideshare that's out there, so that's obviously a huge advantage we have. So I think that that's probably more important at this point, simply because -- but I think really at the end, just to be super honest, I think most suppliers have an incentive to bring on, at least two partners, right, so that they can differentiate -- excuse me, so that they can sort of diversify and also not be beholden to anyone. Nikhil Devnani Thanks, David. Operator Stephen Ju, UBS. Stephen Ju Okay, thank you so much. So David, I think, when you offered Lyft [media] targets back at the investor day, I think there was some amount of skepticism in the market as to whether you can actually hit those goals over the next few years. So but there was a very interesting angle, I thought, where to offer retailers and merchants, traffic based on the user's destination. Especially if they're headed to your store, right? So that sets you up to potentially on board performance ad budget. So can you talk about how this is progressing, and how the outreach efforts to these performance advertisers and undoubtedly also, to the awareness and brand upper funnel advertisers, how that's been progressing? Thanks. John Risher Sure, yeah, a great question and a good memory. So let's start big picture first and then we'll kind of dive in. So at the time, yeah -- I remembered the skepticism that that was not lost on me. We're on track, as we said before, to reach a $100 million run rate at the end of the year, and very much on track and and feel quite good about that. And I will also say, by the way, quite good about the leader who's getting us there, [Suzie]. I've mentioned her in the past. She really helped build YouTube's ad platform and then wave anyway, I can't -- I'm actually as long as I'm bragging on people, I'll brag on the whole team there. It's an extraordinary team and we're actually adding new folks. In fact, we just got a new person on yesterday, so super excited about how we're building that results we've seen so far have been really strong, as I say, we're on track for $100 million. But I think part of it is because, particularly -- I'll come back to your point in a second -- but particularly when we look at some of the big brand partnerships we have, we continue to see, and again this is third-party data, but we continue to see the third-party measurement platforms telling us that we have their numbers, not ours, 7 times the impact relative to the norm on brand perception and we still have about 10 times the standard click through rate. So super good also expanding our formats. So Erin mentioned Wait and Save a little while ago as a nice product for from the consumers so that they can, choose to wait a little longer and save some money. It's also nice for us because it gives us a little bit more time to engage with riders, and we now have a new ad unit which is sort of a vertical takeover, a video unit that takes over while you're waiting, right? So you've got time on your hands while you're waiting and saving, might as well use it, checking out a movie trailer or a kind of a brand activation or seeing a -- very excited about it, still early days, of course, in a lot of ways, but I feel very good about the platform we're building and the opportunity there is. When it comes to what we internally called sponsored rides, yeah, we're still super excited about that. It's very much an experimentation mode. I think, I don't actually have, I just don't know whether we can mention the partners, live now. I'm not sure that we can, but we have a couple of partners that we're working with to try that out, and encouraging there's certain things you try at small scale and then you just don't know yet. But I still have a lot of conviction around it. I know that any -- look, any store, any retailer, any restaurant, anyone who depends on that marginal person to walk in the door to make the week or make the night, they become very interested when they start talking to partners who can literally deliver effectively foot traffic to their door. So anyway, good memory, nothing to share on it right now, but definitely an area where we've still got a real conviction based on what we see. Stephen Ju Thank you. Operator Doug Anmuth, JP Morgan. Douglas Anmuth Thanks for taking questions. I have two. Just as you continue to see strength in rides with the 200 basis points of acceleration, but pricing is down 3% year per year, can you just talk about, what's driving the lower gross bookings per ride, particularly as you, continue to grow luxury modes? And are we seeing more discounts and promotions or just industry-wide pricing dynamics tied to insurance easing? And then maybe on to and just thinking about Delta, is there any shift or change from kind of how you were thinking about the 100 basis point impact to rides and 200 basis point impact from from gross bookings? Thanks. Erin Brewer Thanks, Doug. This is Erin. I'll take the question starting with gross bookings overall. So I'd start with framing that we remain very focused on penetrating that $161 billion private vehicle [TAM] that we've talked about that we highlighted it at our investor continue to grow in our top markets. But one of the -- and commute, David mentioned earlier, commute 10 is particularly strong, which we're really proud of. And then one of the biggest opportunities for us is to really penetrate and grow in what have been historically underrepresented markets. So you've heard us talk about Canada now for a while and our progress there, right? We grew that market 100% in 2024. We grew rides 55% in about to launch in Quebec and a few cities, so we'll continue our growth path there in that market. Overall, gross bookings per ride is lower than the average in the US. And then another area that we highlighted in our prepared remarks is under penetrated markets in the US. So we -- this is not new. We've been kind of taking our formula for operational excellence and customer obsession more broadly in the US. And we've seen fantastic results out of highlighted, for example, in a prepared remarks we talked about growth in Indianapolis, but it's, cities like Indianapolis, Charlotte, where we grew in both cases more than 30% year over year in Q1. And so that's fantastic because we are continuing that really strong growth in active riders and frequency. And Rideshare really is a great option across now multiple markets in addition to the growth of our top markets. But there is a mixed impact, and that's the way you should think about that as you see some of that gross bookings per ride dynamic then your second question as it relates to Delta, so maybe just starting with the fact that the Delta partnership ended on April 7, so still pretty early days. And I think the right way to think about this is, whether you're entering or exiting a partnership like this, it tends to have an impact over time. So in this case, that curves going to depend on the offer that they're getting, also frankly, our efforts around retention and and competitiveness and we have amazing service levels, prices and benefits are really just one part of the process the decision making process on behalf of the rider. The other thing is that our partnership, our past partnership with Delta, offered more benefits than the one that there's today with the other guys. So there's a couple of different decision criteria I think that any that any rider is going to go through. So still relatively early days. We do still believe that over time, this will have an impact of about 1% to our rides, about 2 percentage points to our gross bookings, so that's how I would highlight those. Douglas Anmuth Thank you, Erin. Operator Steven Fox, Fox Advisors. Steven Fox Hi, good afternoon. Just one question, just following up on that last one. If we think more deeply about the Q2 guidance in terms of ride growth and monetizing per ride basis, like what would be the sort of how you would directionally talk about it. Is there any consideration for any consumer spending risks and then where would be some of the things you've highlighted on this call about growth on different platforms, what would be the major drivers? Would it still be commute leading the way or something else? Thanks. Erin Brewer Yeah, sure. So, again, starting at a high level, we provide a range overall for our guide. Our intention is for that range to bracket, of course, for a number of different scenarios overall. We expect commute to continue to be strong. We think this mix of the results of our efforts in some of these under penetrated markets, we continue to see great momentum there. So we think that will have an impact in the second quarter as well as growth in our top of those similar dynamics that I just talked about for Q1, I would expect to, consider for Q2, and maybe I'll start with the consumer sentiment side, David, if you want to add anything. I think the headline here is we're just not seeing anything in our data, as we don't have a lot of leading indicators, but we are not seeing in our data signs of weakening. We see continued growth across modes, across different use cases overall. So David, do you want to add anything to that? John Risher I mean, you just said it's so interesting, we can all probably talk openly about this. We all read the same headlines, but at the same time when we look at the data. We had our strongest ride week, I think the last week of March ever. And then Even as recently as this past week when we look at Cinco de Mayo, which is another area where people tend to take Rideshare, it is super strong. So again, everyone understands the uncertainty in the future and of course we're -- we have a business that's sort of resilient to that. We can talk about that separately if you're interested. But in terms of sentiment so far, things look strong. Steven Fox Yeah, thank you. If you did want to follow up, I'd love to understand just the key headlines on how resilient the business could be and in the downturn. Thanks. John Risher Sure. I mean, I think -- let's talk about the sector first before before Lyft. I do think this sector has a certain amount of resilience built into it. If you look at demand -- well, let's start with the basics, right? Is there demand there? There's definitely a demand there, and we see it week on week. It's again, we've made this point in different ways now. This is part of people's daily lives, and we've talked about commute a might talk about a much different part of the sort of spectrum on healthcare. I think our healthcare rides, it's called non-emergency medical transportation, have grown something like 30% year on year. This is literally people going to doctors and medical appointments and stuff often paid for by somebody else. But the point being that it's, rides have become very foundational for a lot of people. So the demand is when you sort of look at the supply side -- well, actually, hold on, let's talk more about demand. You could imagine a world where, let's say, tariffs increase the price of cars. You can imagine a world where if that's the case, that people become even more interested in Rideshare because it's a lot more approachable to think of a, $10 or $15 ride and it is a $30,000 car that just got more expensive. So, that's kind of I'll point to sort of broad data that says in general, and of course, every economic downturn, if there is such a thing is a little different, but in general, services tend to be more reliant or reliable than durable goods. Durable goods flux a little bit, but services tend to be somewhat more reliable. So within that context, obviously Rideshare then when you look on the supply side, again, this is not any new data. But remember, we have 1.4 million people who drive on the platform. And and they like it, come back to that in a second. But that's also quite an important part of a lot of people's lives. And remember, again, almost a macroeconomic level, it's actually quite stabilizing for the US economy because what it sort of means is that if a person loses their job, which can happen, of course, in economic downturn times, 48 hours later, literally 48 hours later, they could be driving and earning just big picture again, it feels like a very stable place. You never say never, you don't know exactly what the future holds, but certainly we believe that we're very well positioned, going to come what may. Operator -- further questions at this time. With that, I will now turn the call to David Risher, Chief Executive Officer for closing remarks. Please go ahead. John Risher Yeah, thank you, everyone. Thank you, Erin. Thank you, everyone, on the team who's worked so hard to do all of the work we've done to put together a great quarter. So really appreciate everyone on the call as always and your support and Lyft. We've never been in a stronger position as we continue to deliver on our mission to serve and connect. Thank you all very much and we will see you next time. Operator Ladies and gentlemen, this concludes this conference call. We thank you for participating and asking you to please disconnect your lines. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
