| To: Glenn Petersen who wrote (200) | 3/16/2021 9:46:03 PM | | From: Glenn Petersen | | | | Uber grants UK drivers worker status after losing major labor battle
PUBLISHED TUE, MAR 16 20215:00 PM EDT
UPDATED TUE, MAR 16 20216:55 PM EDT
Deirdre Bosa @DEE_BOSA
CNBC.com
KEY POINTS
-- Uber will reclassify all U.K.-based drivers as workers
-- .Under the new designation, more than 70,000 drivers will receive some benefits, including minimum wage, holiday time and pension contributions, but they will not get full employee benefits.
-- Uber’s U.K. ride-hailing business accounted for 6.4% of all mobility gross bookings in the fourth quarter of 2020.
On the heels of losing a major labor battle in the United Kingdom, Uber will reclassify all U.K.-based drivers as workers.
Under the new designation, more than 70,000 drivers will receive some benefits, including minimum wage, holiday time and pension contributions, but they will not get full employee benefits.
Uber announced the change in a Securities and Exchange Commission filing, adding that its U.K. ride-hailing business accounted for 6.4% of all mobility gross bookings in the fourth quarter of 2020.
While the move will increase Uber’s costs in the U.K., the company is still targeting adjusted EBITDA profitability by year-end.
Earlier this year, Uber lost a major legal battle in the U.K. around this issue. The country’s Supreme Court upheld a ruling that a group of drivers were workers, not independent contractors. While the decision applied to a small group of drivers, thousands more have taken action against the company.
In an op-ed in The Evening Standard, Uber CEO Dara Khosrowshahi wrote that following the Supreme Court ruling, “we could have continued to dispute drivers’ rights to any of these protections in court. Instead, we have decided to turn the page.”
“I know many observers won’t pat us on the back for taking this step, which comes after a five-year legal battle,” Khosrowshahi said. “They have a point, though I hope the path that we chose shows our willingness to change.”
Meanwhile, Uber and the gig economy as a whole is facing regulatory challenges around the globe. Uber has spent millions battling those challenges in other regions.
In California, Uber pushed back against Assembly Bill 5, a gig-economy law passed by the state legislature in 2019 that tightened the rules for classifying workers as independent contractors.
After a widespread campaign, costing over $200 million — the most expensive ballot measure in the state’s history — Uber and a handful of other gig-economy companies persuaded voters to support a ballot measure called Proposition 22, which exempted Uber and other gig-economy platforms from state employment law.
In turn, gig workers received some benefits without full employment status. Some of the additional costs of providing benefits were passed on to ride-hailing customers.
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| From: Glenn Petersen | 4/12/2021 9:45:33 AM | | | | | | Uber posts record gross bookings in March as ride-hailing demand picks up
PUBLISHED MON, APR 12 20216:48 AM EDT
UPDATED MON, APR 12 20217:36 AM EDT
Ryan Browne @RYAN_BROWNE_
CNBC.com
KEY POINTS
-- Uber’s mobility unit was hit hard by the coronavirus pandemic last year as lockdowns reduced demand for ride sharing.
-- The tech giant has seen a pickup in demand for ride hailing lately, as states begin to relax their restrictions and roll out vaccines.
-- Last week, Uber said it would spend $250 million in a one-time “stimulus” package aimed at getting drivers back on the road.
Uber on Monday posted record gross bookings in the month of March, signaling a pickup in demand for its ride-hailing business.
The tech giant’s mobility unit was hit hard by the coronavirus pandemic last year as lockdown restrictions led to a collapse in demand for ride-sharing services. A boom in food delivery, however, helped limit losses in 2020.
Uber said its mobility segment, or ride-hailing business, posted its best month since March 2020, with an annualized run rate of $30 billion. That was up 9% from a month earlier. Its delivery unit reached a record annual run rate of $52 billion in March, more than doubling from the previous year.
“As vaccination rates increase in the United States, we are observing that consumer demand for Mobility is recovering faster than driver availability, and consumer demand for Delivery continues to exceed courier availability,” Uber said in a filing with the Securities and Exchange Commission.
Shares of Uber climbed more than 2% in U.S. premarket trading.
Uber announced plans last week to spend $250 million in a one-time “stimulus” package aimed at getting drivers back on the road. The money will go toward bonuses for drivers, guaranteed pay and on-boarding new drivers. The plan comes as states begin to pull back some of their pandemic restrictions and roll out vaccines.
Uber lost nearly $6.8 billion last year, and there have long been doubts about whether Uber’s business model works. But the company believes it can still become profitable by the end of 2021 on an adjusted EBITDA basis. Lyft, Uber’s main rival in the U.S., has made a similar commitment.
Last month, Uber reclassified all 70,000 of its U.K. drivers as workers entitled to a minimum wage and other employment protections after the country’s Supreme Court ruled a group of Uber’s drivers should be classed as workers, not independent contractors. The move is expected to lead to higher costs for Uber and could have broader ramifications for the gig economy.
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| To: Glenn Petersen who wrote (202) | 5/4/2021 5:19:26 PM | | From: Glenn Petersen | | | | Lyft shows more signs of pandemic recovery with revenue up 7% over last quarter
PUBLISHED TUE, MAY 4 20214:06 PM EDT
UPDATED 10 MIN AGO
Jessica Bursztynsky @JBURSZ
KEY POINTS
-- MRide-hailing company Lyft beat on the top and bottom lines and exceeded Wall Street’s rider expectations for its first quarter.
-- The company reported a loss per share of 35 cents vs 53 cents per share expected in a Refinitiv survey of analysts.
-- It also brought it $609 million of revenue vs $558.7 million expected by Refinitiv.
Ride-hailing company Lyft showed continued signs of pandemic recovery in its first-quarter earnings report Tuesday. The company beat on the top and bottom lines and exceeded Wall Street’s rider expectations for the quarter.
Shares of Lyft were up more than 4% in after-hours trading following the report.
Here are the key numbers Lyft reported:
Loss per share: 35 cents vs 53 cents per share expected in a Refinitiv survey of analysts
Revenue: $609 million vs $558.7 million expected by Refinitiv
Active riders: 13.49 million vs 12.8 million expected in a FactSet survey
Revenue per active rider: $45.13 vs $44.50 expected per FactSet
It’s difficult for investors to compare year-over-year numbers from the company, as the Covid-19 pandemic began to take hold a year ago and severely restricted travel. For example, revenue is down 36% year over year, but increased 7% from the fourth quarter.
Lyft also issued guidance for its second quarter, telling investors it expects revenue between $680 million to $700 million. That’s a 12% to 15% increase quarter over quarter.
Transit companies are beginning to rebound from their pandemic lows as Covid vaccines roll out and state restrictions are lifted, pushing people to feel more comfortable returning to work or traveling.
The company said in mid-March that it expected to post positive weekly ride-hailing growth on a year-over-year basis and every subsequent week through the end of the year, barring a significant worsening of coronavirus conditions.
“We continue to believe there is still significant pent up demand for mobility that will take time to play out,” CEO Logan Green said on a call with investors.
The company reaffirmed its expectation that it will reach profitability on an adjusted EBITDA basis by the third quarter of the year. Lyft had originally set a goal to reach the benchmark by the end of the year.
Lyft reported a net loss of $427.3 million for the quarter, up from a net loss of $398.1 million in the same quarter a year ago. The company said its net loss includes $180.7 million of stock-based compensation and related payroll tax expenses. Lyft said its net loss margin was 70.2% compared to 41.7% a year ago.
Its adjusted EBITDA loss was $73 million, which was about $62 million better than the company’s most recent outlook. Adjusted EBITDA loss margin for the quarter was 12%, compared to 8.9% in the first quarter of 2020 and 26.3% in the fourth quarter of 2020. EBITDA refers to earnings before interest, taxes, depreciation and amortization.
Lyft also reported $2.2 billion unrestricted cash, cash equivalents and short-term investments, down slightly from the prior quarter.
The company last week sold off its self-driving car unit to Woven Planet, a subsidiary of Toyota, for $550 million in cash, in another way to advance its profitability timeline. The company expects the deal will remove $100 million of annualized non-GAAP operating expenses on a net basis, according to the release.
“With the pending sale of our Level 5 self-driving division, Lyft is set up to win the transition to autonomous through our hybrid network of human drivers and AVs, advanced marketplace tech, and leading fleet management capabilities,” John Zimmer, Lyft co-founder and president, said in the earnings release.
Green added that the sell was “strategically the right move at the right time.”
Lyft earnings Q1 2021 (cnbc.com) |
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| To: Glenn Petersen who wrote (203) | 5/5/2021 6:04:03 PM | | From: Glenn Petersen | | | | Uber losses dramatically improve thanks to sale of self-driving unit
PUBLISHED WED, MAY 5 20214:07 PM EDT
UPDATED AN HOUR AGO
Jessica Bursztynsky @JBURSZ
CNBC.com
KEY POINTS
-- Uber reported first quarter results after-the-bell on Wednesday.
-- Overall, Uber’s net loss was $108 million, a tremendous improvement from a $968 million loss in its fourth quarter.
-- The company said its net loss benefited this quarter from a $1.6 billion gain from the divestiture of its self-driving unit ATG.
Uber beat estimates on the top line and dramatically improved its net losses in its first quarter, but missed on revenue.
Shares initially gained in after-hours trading before dipping more than 1%.
Here’s how Uber did versus expectations:
Loss: 6 cents vs 54 cents expected, according to a consensus of analysts surveyed by Refinitiv.
Revenue: $2.90 billion vs $3.29 billion expected per Refinitiv.
It’s difficult for investors to compare year-over-year numbers from the company, as the Covid-19 pandemic began to take hold a year ago and severely restricted travel. However, ride-share companies are beginning to bounce back from their pandemic lows as coronavirus vaccines roll out and restrictions are eased.
Overall, Uber’s net loss was $108 million, a tremendous improvement from a $968 million loss in its fourth quarter of 2020. But that was largely due to a $1.6 billion gain from the sale of its self-driving unit, ATG. Uber’s operating loss was still high for the quarter at more than $1.5 billion.
Uber reaffirmed its expectation to reach profitability on an adjusted EBITDA basis by the end of this year.
Its adjusted EBITDA loss was $359 million, which improved by $95 million from the prior quarter. EBITDA refers to earnings before interest, taxes, depreciation and amortization.
Here’s how Uber’s largest business segments performed in the first quarter of 2021:
Mobility (gross bookings): $6.77 billion, down 38% from a year ago
Delivery (gross bookings): $12.46 billion, up 166% from a year ago
Delivery revenue also outperformed its core ride-hailing business at $1.7 billion compared to $853 million. The company has relied on its delivery services to make up for lost transit during the pandemic. Uber said the Eats segment revenue was up 28% quarter over quarter.
“We’re finally seeing the light at the end of the tunnel,” CEO Dara Khosrowshahi said on a call with investors. “Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings.”
In an update to shareholders, the company said that merchants on Uber Eats exceeded 700,000 in the first quarter, with the additions of Mr. Beast Burger, Rite Aid and Smoothie King.
The company also entered into an agreement with Gopuff to offer more convenience store and grocery items starting in June.
Ride-share trends are starting to improve in some markets, Khosrowshahi said, and is “optimistic this trend should accelerate going forward.”
Uber is also facing an immediate and growing need for more drivers, struggling to meet demand following Covid vaccines and an easing of restrictions. The company said last month it would spend $250 million on a one-time stimulus aimed at getting drivers back on the road. If it doesn’t match supply, the company could face annoyed customers who are having to shell out more cash or even have to put out more incentives.
Uber said it has approximately 3.5 million drivers and couriers on its platform, up 4% quarter-over-quarter but still a 22% year-over-year dip.
Trips on the platform were flat quarter-over-quarter at 1.45 billion, and 13% below the same quarter a year ago. The company said its continued growth in delivery trips are offsetting declines in its mobility unit.
Uber also faced pressure during the quarter in the U.K. after the nation’s Supreme Court upheld a ruling that its drivers are workers, not independent contractors.
The company said it took a $600 million hit to ride-hailing revenue “due to the accrual made for the resolution of historical claims in the UK relating to the classification of drivers.”
Classifying drivers as contractors allows the companies to avoid the costly benefits associated with employment, such as unemployment insurance. If a similar measure ends up passing in the United States, it could make it harder for them to reach profitability.
This story is developing. Please refresh for updates.
Uber Q1 2021 earnings (cnbc.com) |
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| From: TimF | 5/11/2021 5:58:28 PM | | | | | | Did Ride Hailing Increase Congestion?
By The Antiplanner | April 29, 2021 | Transportation
“A new MIT study found that not only do rideshares increase congestion, but they also made traffic jams longer, led to a significant decline in people taking public transit, and haven’t really impacted car ownership,” reports Gizmodo. As noted here previously, transit advocates blame ride hailing for all sorts of problems in order to justify taxes and other restrictions to limit competition.
The new study from MIT is frankly unpersuasive. First of all, it says very little about the methodology used to come up with its results: page 1 of the study is an introduction and page 2 immediately begins to present the results. It appears the writers compared data in 44 urban areas before and after the introduction of ride hailing into those areas between 2012 and 2016.
Second, the writers appear to have made no effort to correct for or even consider any other variables. Although Uber began operating in San Francisco in 2010, ride hailing didn’t really begin growing until 2014. But the other thing that happened in 2014 was a huge drop in gasoline prices — prices fell by 50 percent in some areas. This isn’t even mentioned in the paper even though that drop could have most of the same effects the paper attributes to ride hailing.
Third, a fact not mentioned in many of the press reports about the paper, the writers conclude that ride hailing increased congestion by 0.9 percent. Less than 1 percent! That’s smaller than the margin of error of much of the data used in the paper.
Fourth, the paper also blames an 8.9 percent drop in transit ridership on ride hailing. If ride hailing had reduced transit ridership by that much, we should be grateful that someone is substituting for-profit transportation that goes where people want when they want to go for money-losing transportation that only goes to a limited number of destinations on rigid schedules. However, that drop, which in most areas began in 2014, is due more to the decline in gas prices than to ride hailing.
If this study weren’t from MIT, I would call this junk science. Maybe it should be called that anyway because its results aren’t replicable (since the methodology isn’t explicitly described) and it failed to account for alternative explanations of the changes it observed.
ti.org |
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| To: TimF who wrote (205) | 5/11/2021 8:13:22 PM | | From: Kirk © | | | | All I know is it has sure been nice this past year to not have the damned Uber and Lyft drivers clog the roads looking at maps at stop signals that turn green then stopping in no stopping zones and blocking traffic. The roads are much safer without this lawbreaking activity.
The worst that I miss the least is them driving very slow so they can arrive on time and not have to go around a very long block to catch rides at the expensive apartments nearby that Facebarf, Giggle and Stanford use for short term rentals of highly paid visiting workers.
I don't think I've honked my horn at one of those law breaking jackasses in over a year.
They are GREAT for delivering food and packages where they don't block traffic and the people at the destination are waiting for them so they have incentive to go faster so they can maybe get an extra delivery in their day. |
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| From: Glenn Petersen | 6/11/2021 12:59:08 PM | | | | | | Do the math.
Didi didn’t disclose the size of its raise. Reuters reported the company could raise around $10 billion at a valuation of close to $100 billion, though The Wall Street Journal cited a valuation upward of $70 billion. Uber’s market cap currently exceeds $90 billion.
Cheng Wei, Didi’s 38-year-old founder owns 7% of the company’s shares and controls 15.4% of its voting power before the IPO, according to the prospectus. Major shareholders to reap returns are SoftBank Vision Fund, which owns 21.5% of the company, Uber with 12.8% and Tencent at 6.8%.
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SoftBank, Uber, Tencent set to reap rewards from Didi IPO
Rita Liao @ritacyliao
TechCrunch
8:08 PM CDT•June 10, 2021
After years of speculation, Didi Chuxing, China’s ride-sharing behemoth, finally unveiled its IPO filing in the U.S., giving a glimpse into its money-losing history.
Didi didn’t disclose the size of its raise. Reuters reported the company could raise around $10 billion at a valuation of close to $100 billion, though The Wall Street Journal cited a valuation upward of $70 billion. Uber’s market cap currently exceeds $90 billion.
Cheng Wei, Didi’s 38-year-old founder owns 7% of the company’s shares and controls 15.4% of its voting power before the IPO, according to the prospectus. Major shareholders to reap returns are SoftBank Vision Fund, which owns 21.5% of the company, Uber with 12.8% and Tencent at 6.8%.
The nine-year-old company, which famously acquired Uber’s China operations in 2016, is more than a ride-hailing platform now. It has a growing line of businesses like bike-sharing, grocery, intra-city freight, financial services for drivers, electric vehicles and Level 4 robotaxis, which it defines as “the pinnacle of our design for future mobility” for its potential to lower costs and improve safety.
Didi set up an autonomous driving subsidiary that banked $500 million from SoftBank’s second Vision Fund in May last year. The unit now operates a team of over 500 members and a fleet of over 100 autonomous vehicles. It’s also designing EVs for ride-hailing as China pushes taxis and ride sharing companies to phase out fossil fuel vehicles.
Market dominance
For the twelve months ended March, Didi served 493 million annual active users and saw 41 million transactions on a daily basis. It had 156 million monthly users in Q1, well above Uber’s 98 million in the period.
China’s official data showed the country had 365 million ride hailing users as of December, which suggests Didi commands a substantial market share.
Mobility services in China have consistently accounted for over 90% of Didi’s revenues. The company has tried to expand its presence in a dozen overseas countries like Brazil, where it bought local ride-hailing business 99 Taxis. And more than 97% of Didi’s China-based mobility revenues — which also include taxi hailing, chauffeur and carpooling, a lucrative business that was revamped following two deadly accidents — came from ride-hailing between 2018 and 2020.
Third-party data also speaks to Didi’s dominance. Aurora Mobile, an app tracking firm, showed that Didi had 77.6 million active users in March. Its closest rival Geely-backed Caocao was less than one-tenth of its size.
Didi had been operating in the red from 2018 to 2020, when it finished the year with a $1.6 billion net loss, but managed to turn the tide in the first quarter of 2021 by racking up a net profit of $837 million. It noted that the increased profit was primarily due to investment income from the deconsolidation of Chengxin, its cash-burning grocery group buying initiative, and an equity investment disposal.
Revenue from Q1 also more than doubled year-over-year to $6.6 billion. Uber, in comparison, racked up $2.9 billion in revenue for the period.
Didi plans to spend 30% of its IPO proceeds on shared mobility, electric vehicles, autonomous driving and other technologies. 30% will go towards its international expansion and another 20% will be used for new product development.
SoftBank, Uber, Tencent set to reap rewards from Didi IPO | TechCrunch |
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| From: Glenn Petersen | 7/22/2021 9:28:14 AM | | | | | | Uber to buy transportation logistics company Transplace in $2.25 billion deal
PUBLISHED THU, JUL 22 20219:00 AM EDTUPDATED 8 MIN AGO
Jessica Bursztynsky @JBURSZ
CNBC.com
KEY POINTS
-- Uber Freight, the rideshare company’s trucking division, said Thursday it’s acquiring Transplace in a deal that values the transportation logistics company at $2.25 billion.
-- Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG.
-- The deal consists of of up to $750 million in common stock of Uber and the remainder in cash.
Uber Freight, the rideshare company’s trucking division, said Thursday it’s acquiring Transplace in a deal that values the transportation logistics company at $2.25 billion.
Uber shares dipped slightly in premarket trading.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG that acquired Transplace in 2017. The deal consists of of up to $750 million in common stock of Uber and the remainder in cash.
It’s a rare move for Uber, which has spent the last year shedding its profit-eating self-driving unit and flying taxi segment. Instead, Uber has been choosing to pour billions into strengthening its Uber Eats segment, acquiring alcohol delivery company Drizly and food delivery service Postmates.
The deal, the companies said, will create one of the leading logistics technology platforms. The companies said the acquisition comes at a time of accelerated transformation in logistics.
“The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology,” the company said. “In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods, and the economy, moving.”
The deal is expected to help Uber’s trucking division reach profitability. The company said it could help the segment break even on an adjusted EBITDA basis by the end of 2022.
The deal is still subject to regulatory approval.
Uber to buy transportation logistics company Transplace in $2.25 billion deal (cnbc.com) |
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| From: Glenn Petersen | 8/4/2021 5:33:44 PM | | | | | | Uber beats estimates, but core business lost $509 million in Q2
PUBLISHED WED, AUG 4 20214:05 PM EDT
UPDATED 8 MIN AGO
Jessica Bursztynsky @JBURSZ
CNBC.com
KEY POINTS
-- Uber beat on both the top and bottom lines in its second quarter earnings report Wednesday.
-- The company reported a net income of $1.1 billion for the quarter.
-- It also reaffirmed its expectation to reach profitability on an adjusted EBITDA basis by the end of this year.
Uber beat estimates on the top and bottom line and turned an unexpected one-time profit during the second quarter.
Shares dipped more than 4% in after hours trading.
Here’s how Uber did versus expectations:
Earnings per share: 58 cents vs an expected 51 cent loss, according to a consensus of analysts surveyed by Refinitiv.
Revenue: $3.93 billion vs $3.75 billion expected, according to Refinitiv.
Uber reported a net income of $1.1 billion for the quarter. That was largely due to unrealized gains of $1.4 billion in Didi and $471 million in Aurora. Shares of Didi have dropped about 37% over the last month, however, shrinking Uber’s stake in the company down by $2 billion last week. Uber’s operating loss was still $1.19 billion.
Its adjusted EBITDA loss was $509 million, down $150 million from the prior quarter but an improvement of $328 million from last year. EBITDA refers to earnings before interest, taxes, depreciation and amortization.
Uber reaffirmed its expectation to reach profitability on an adjusted EBITDA basis by the end of this year.
“As we make progress towards that important milestone, we expect our Adjusted EBITDA loss in Q3 to improve to less than $100 million in addition to record Gross Bookings between $22 and $24 billion,” CFO Nelson Chai said in a letter to investors.
So far, Uber’s Eats segment has bolstered the company to withstand many of the Covid headwinds. When people stopped traveling, they turned to food and goods deliveries. Uber added that its delivery business stayed strong even as Covid restrictions eased around the world.
Here’s how Uber’s largest business segments performed in the second quarter of 2021:
Mobility (gross bookings): $8.6 billion, up 184% from a year ago
Delivery (gross bookings): $12.9 billion, up 85% from a year ago
Delivery revenue has continued to outperform its core ride-hailing business at $1.96 billion, compared with $1.62 billion. In an update to shareholders, the company said that delivery merchants exceeded 750,000.
The company has struggled with supply and demand imbalances because of the pandemic, leading to surge pricing and increased wait times. CEO Dara Khosrowshahi said on the company’s call with investors that prices and wait times are still not at its targets.
“In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increasing by nearly 420,000 from February to July,” Khosrowshahi said in a statement.
The company did not provide an exact number of drivers, but Khosrowshahi said he was optimistic with growth rates after the company made heavy investments into bringing people back. The company added 30% more drivers in the U.S. from June to July.
“The good news is we’re now in a good place where we’re able to pull those investments back,” Khosrowshahi said. “The investments were big, but the investments were worth it.”
Uber reported 1.51 billion trips on the platform, up 4% from the first quarter and 105% from a year ago. Uber said its drivers and couriers earned an aggregate $7.9 billion during the quarter.
Uber’s largest American competitor, Lyft, also shared financial results this week. The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million, a quarter earlier than expected. It also beat Wall Street guidance on both the top and bottom lines.
This is a developing story. Please refresh for updates.
Uber earnings Q2 2021 (cnbc.com) |
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| To: Glenn Petersen who wrote (209) | 8/4/2021 6:25:02 PM | | From: Glenn Petersen | | | | Lyft revenue grows 125% from last year
PUBLISHED TUE, AUG 3 20214:08 PM EDT
UPDATED TUE, AUG 3 20215:36 PM EDT
Jessica Bursztynsky @JBURSZ
CNBC.com
KEY POINTS
-- Lyft reported second-quarter financial results after-the-bell Tuesday, easily beating on both the top and bottom lines.
-- The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million.
-- Lyft also beat analyst’s active rider expectations.
Lyft reported second-quarter earnings on Tuesday, easily beating on both the top and bottom lines. The company also beat Wall Street expectations for active riders.
Lyft stock was up around 1% in after-hours trading.
Here are the key numbers:
Loss per share: 5 cents vs 24 cents per share expected in a Refinitiv survey of analysts
Revenue: $765 million vs $696.9 million expected by Refinitiv
Active riders: 17.14 million vs 15.45 million expected, per StreetAccount
Revenue per active rider: $44.63 vs $45.36 expected, per StreetAccount
The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million. That’s a quarter earlier than the company had targeted. EBITDA refers to earnings before interest, taxes, depreciation and amortization.
“It’s a significant milestone for a business and for our industry,” CEO Logan Green said on the company’s earnings call. “Going forward we expect to maintain adjusted EBITDA profitability.”
Lyft said its revenue for the quarter jumped 125% year-over-year to $765 million. Revenue was up 26% from the prior quarter. Lyft also issued guidance for its third quarter, telling investors it expects revenue between $850 million and $860 million, barring a material decline in the operating landscape due to the pandemic.
The company said it saw strong demand from riders in July despite an increase in Covid case counts. Lyft reported 17.14 million active riders, up more than 3.6 million riders from the first quarter. Still, the company hasn’t fully recovered to pre-pandemic ridership levels. It reported 21.2 million riders in the first quarter of 2020.
The company has struggled with driver supply and demand imbalances, leading to surge pricing and increased wait times. That, in turn, leads to unhappy customers who could seek out ride services somewhere else.
Green said the number of drivers increased in the second quarter at a faster pace than in the first quarter. He added the company will continue to invest in driver incentives in the coming quarter.
Lyft reported a net loss for the quarter of $251.9 million versus a net loss of $437.1 million in the same period of 2020. The company said its net loss includes $207.8 million of stock-based compensation and related payroll tax expenses. Its net loss margin for the quarter was 32.9% compared to 128.8% in the same quarter a year ago.
The company reported $2.2 billion in unrestricted cash, cash equivalents and short-term investments, flat from the prior quarter.
Lyft earnings Q2 2021 (cnbc.com) |
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