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Lyft projects upbeat bookings in fourth quarter on strong demand from weekday commuters
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Lyft projects upbeat bookings in fourth quarter on strong demand from weekday commuters
Nov 6, 2024 1:24 PM

Nov 6 (Reuters) - Lyft ( LYFT ) forecast current-quarter

gross bookings above estimates after beating September-quarter

sales on Wednesday as more people return to offices, indicating

steady demand for ride-hailing services.

As more companies enforce return-to-office policies, workers

are increasingly turning to app-based taxi services such as Lyft ( LYFT )

and Uber ( UBER ) for their daily commute, leading to a surge in

weekday demand for ride-hailing services.

While Uber ( UBER ) last week reported better-than-expected

third-quarter revenue, its forecast for the holiday quarter fell

short of analyst estimates, disappointing investors.

Despite Uber's ( UBER ) dominant position in the industry, analysts

and investors anticipate Lyft ( LYFT ) to maintain its strong

second-place standing.

Lyft ( LYFT ) has been investing in strategies to attract and retain

more drivers, aiming to solidify its market position and capture

a larger share of the market from Uber ( UBER ).

Revenue surged 31.5% 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 about 17%,

higher than Wall Street's expectation of 16.3%.

Earlier in the day, Lyft ( LYFT ) said it would partner with Mobileye

and two other companies in the robotaxi industry to

bring self-driving cars onto its ridehail platform and bolster

research and development in the sector.

Lyft ( 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 ( UBER ).

Lyft ( LYFT ) said it expects gross bookings between $4.28 billion

and $4.35 billion in the fourth quarter, above estimates of

$4.23 billion.

It forecast current-quarter core earnings of $100 million to

$105 million, higher than expectations of $85.1 million.

The company's adjusted earnings before interest, tax,

depreciation and amortization of $107.3 million in the third

quarter, beating expectations of $94.4 million.

(Reporting by Akash Sriram in Bengaluru; Editing by Anil

D'Silva)

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