(Reuters) -Lyft ( LYFT ) reported third-quarter revenue growth a tad below Wall Street expectations on Wednesday amid intense competition in its core North American markets, overshadowing an upbeat bookings forecast for the holiday travel season.

Shares of the San Francisco-based company fell about 3% in extended trading.

The company has benefited from its recent push into international markets and underserved regions in the U.S. amid saturating demand in large metropolitan areas. It has focused on positioning its European operations, Freenow, as a premium service, complementing its mass-market presence in North America.

"Our strategic acquisition of Freenow is expected to bring more than six million annual riders to our platform in 2026," the company said.

The upmarket strategy is also gaining traction at home, with high-margin premium rides growing 50% in the quarter and the launch of its Lyft Business Travel program helping capture lucrative airport and corporate travel.

Lyft ( LYFT ) said it expects gross bookings between $5.01 billion and $5.13 billion for the fourth quarter, above analysts' average estimate of $4.98 billion, according to data compiled by LSEG.

Lyft ( LYFT ) said revenue for the three months ended September was $1.69 billion, growing 10.7% from a year earlier, slower than analysts' estimates of an 11.5% rise.

The push into underpenetrated U.S. markets, particularly college towns, drove roughly 70% of the ride growth in the reported quarter, Lyft ( LYFT ) said.

The company is also leaning into business travel, recently launching a program offering cash back on business rides and securing a new partnership with United Airlines to bolster its presence in the high-value airport transportation market.

The company recorded adjusted core earnings of $138.9 million during the third quarter, marginally below the estimate of $140 million.

(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)