Lyft on Wednesday forecast current-quarter gross bookings above estimates after posting upbeat quarterly sales, indicating steady demand for its ride-hailing services from people returning to workplaces.
Lyft shares, which typically see substantial price swings following its quarterly earnings, jumped about 20 per cent in extended trading.
As more companies enforce return-to-office policies, workers are increasingly turning to app-based taxi services such as Lyft and Uber for their daily commute, leading to a surge in weekday demand for ride-hailing services.
While Uber last week reported better-than-expected third-quarter revenue, its forecast for the holiday quarter fell short of analyst estimates.
Despite Uber’s dominant position in the industry, Wall Street expects Lyft to maintain its strong second-place standing.
“We think the firm had a solid third quarter, with impressive gross bookings and revenue growth. We think the firm is also working effectively on increasing its scale, as you saw both rides and riders increase year over year,” Morningstar analyst Malik Ahmed Khan said.
Lyft has implemented several initiatives this year to attract and retain more drivers, including guaranteed minimum earnings and higher pay for longer trips, as it seeks to meet rising demand and compete with Uber.
Revenue surged 31.5 per cent to $1.52 billion in the quarter ended Sept. 30, surpassing analysts’ average estimate of $1.44 billion, according to data compiled by LSEG.
It expects gross bookings for the year to grow by about 17 per cent, which is higher than Wall Street’s expectation of 16.3 per cent.
Earlier in the day, Lyft said it would partner with Mobileye and two other companies in the robotaxi industry to bring self-driving cars onto its ride-hailing platform and bolster research and development in the sector.
Lyft said it was expecting gross bookings between $4.28 billion and $4.35 billion in the fourth quarter, above estimates of $4.23 billion.
It forecast current-quarter adjusted
