Lyft (LYFT, Financial) is set to begin a new venture by incorporating standard taxi services into its platform in certain U.S. cities. Starting on May 5, 2023, this service will initially be available in St. Louis. The new option is aimed at providing an alternative to rides offered by gig economy drivers.
This expansion comes as part of Lyft's strategy to better compete with its main rival, Uber (UBER), by offering a wider range of transportation choices to its users. Riders interested in using traditional taxis will need to opt-in to this feature. Lyft's decision to integrate taxis highlights the company's efforts to diversify its services in the face of an evolving transportation market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 37 analysts, the average target price for Lyft Inc (LYFT, Financial) is $16.37 with a high estimate of $26.00 and a low estimate of $10.00. The average target implies an upside of 43.08% from the current price of $11.44. More detailed estimate data can be found on the Lyft Inc (LYFT) Forecast page.
Based on the consensus recommendation from 47 brokerage firms, Lyft Inc's (LYFT, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lyft Inc (LYFT, Financial) in one year is $17.17, suggesting a upside of 50.09% from the current price of $11.44. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lyft Inc (LYFT) Summary page.
LYFT Key Business Developments
Release Date: February 11, 2025
- Gross Bookings: $16.1 billion for 2024, up 17% year over year.
- Adjusted EBITDA Margin: 2.4% of gross bookings for 2024.
- Free Cash Flow: $766 million for 2024.
- Q4 Gross Bookings: $4.28 billion, up 15% year over year.
- Q4 Adjusted EBITDA Margin: 2.6% of gross bookings.
- Q4 Free Cash Flow: $140 million.
- 2024 GAAP Profitability: First full year of GAAP profitability.
- Driver Earnings: Nearly $9 billion in 2024.
- Rides Growth: 15% year over year in Q4.
- Active Riders Growth: 10% year over year in Q4.
- Q1 2025 Guidance - Gross Bookings: $4.05 billion to $4.2 billion.
- Q1 2025 Guidance - Adjusted EBITDA: $90 million to $95 million.
- Share Buyback Program: $500 million authorized by the Board.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lyft Inc (LYFT, Financial) achieved all-time highs in rides, riders, and driver hours in 2024, marking its strongest position ever.
- The company reported its first-ever year of GAAP profitability and positive free cash flow for the full year.
- Lyft Inc (LYFT) saw a significant improvement in driver retention and earnings, with drivers collectively earning nearly $9 billion in 2024.
- The introduction of features like price lock and reduced surge pricing led to riders saving over $400 million in 2024.
- Lyft Inc (LYFT) expanded its high-margin offerings, such as Lyft Black and Lyft SUV, which grew 41% year over year.
Negative Points
- Lyft Inc (LYFT) experienced lower pricing dynamics in the US market starting late in the fourth quarter, impacting gross bookings growth.
- The company's partnership with Delta is ending in April 2025, which is expected to impact rides and gross bookings growth.
- There is a concern about the sustainability of lower pricing and its potential impact on gross margins in 2025.
- Lyft Inc (LYFT) faces competition from new market entrants like Waymo, which could affect market dynamics in key cities.
- The company anticipates a low single-digit percentage point impact on gross bookings if the lower pricing environment persists.
