Summer travel and more frequent commutes to the office gave a boost to Lyft Inc.’s second-quarter results on Tuesday. The ride-sharing platform’s third-quarter sales forecast also topped estimates, and executives were bullish on earlier efforts to cut prices, the growth of the ride-share market and upcoming back-to-school demand as people reshape their routines in the weeks ahead.
The concerns sent Lyft LYFT shares 9.2% lower on Wednesday. Some analysts also had bigger questions about the company’s overall efforts to turn a profit and separate itself from its larger rival, Uber Technologies Inc. UBER . The potential hit to those margins would come after contract renewals on Oct. 1 for insurance that covers drivers when they’re picking up riders or taking them to their destination.
Wedbush analysts, in a note on Wednesday, suggested that any growth in the ride-share industry after major pandemic-related disruptions would benefit Uber as well.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: Reuters - 🏆 2. / 97 Read more »