Home / Business and Economy / Lyft Rideshare Prices Drop Amidst California Legislation
Lyft Rideshare Prices Drop Amidst California Legislation
11 Feb
Summary
- Revenue increased 3% year over year, while bookings rose 19%.
- Active riders and total rides fell short of analyst expectations.
- New California legislation reduced insurance costs, lowering prices.
Lyft's revenue saw a 3% increase compared to the previous year, with bookings climbing by 19% to reach $5.07 billion, aligning with market expectations. The company posted net income of approximately $2.76 billion, or $6.72 per share.
Despite positive financial growth, Lyft's ride metrics for the fourth quarter were lackluster. The company reported 29.2 million active riders, falling slightly short of the 29.5 million estimate, and 243.5 million total rides, below the projected 256.6 million.
Lyft noted that recent legislation in California, which reduced insurance costs, has contributed to lower rideshare prices. The company anticipates this will spur demand over time, though widespread consumer adoption is expected to materialize gradually and primarily in the latter half of the year.
Additionally, Lyft's board has authorized up to an additional $1 billion in share buybacks, signaling a continued commitment to shareholder returns.
