Lyft released its financial results for the third quarter of 2020 on Tuesday, beating analyst’s expectations. Recovery has been observed in the San Francisco-based ride-hailing company’s sales from pre-pandemic days, but the revenue is still half of what it was last year.
The ridesharing company has reported $499.7 million in revenue for Q3 2020, a drop of 48% in revenue from $955.6 million in Q3 2019. Still, it is an improvement of 47% over the last quarter, which was $339.3 million.
Based on active riders, the company’s performance has seen a downfall of 44% compared to the Q3 2019 — July to September of 2019. Contrarily, an inxrease of 44% has also been seen considering the statistics of the Q2 2020 — April to June.
Discussing the revenue per active rider, it fell by 7% as to what it was in Q3 of 2019 but rose 2% as compared to that in the last period – Q2 of 2020.
Analyzing the results from a close eye, CEO Lyft, Logan Green, feels optimistic about further recovery by expressing his opinion on this matter.
In a prepared statement, Green said: “We are encouraged by the ongoing recovery in ridesharing and the performance improvements we saw across bikes, scooters, and fleet.”
“We remain confident that demand will continue to return as we progress through the recovery,” Green completed.
Uber, also providing ridesharing services like Lyft, didn’t face as much loss as Lyft. Uber recovered the downfall from ridesharing through its delivery business and international operations. Delivery business has seen a boom during pendamic.
Lyft is just catering to the US market (and a few cities in Canada) and lacks delivery services are the core reasons why its sales plunged.
In terms of share price, Lyft dropped to $1.46 per share, giving an overall loss of $459.5 million in revenue. It was $1.57 per share last year.
Despite all the losses, one thing that the senior management of Lyft is positive about is the passing of Proposition 22. This victory will save them from paying their contractors any benefits.
“As we look to the future, the win on Proposition 22 in California was a landmark achievement and a major victory for drivers, our industry and the broader Lyft community,” John Zimmer, Co-Founder & President of Lyft celebrated.
As about giving an insight into the future, Lyft proposes that they will achieve EBITDA profitability by the fourth quarter of 2021.
Featured image: Don Emmert/AFP/Getty