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Lyft's path to profit disappoints investors

Video Credit: Reuters Studio - Duration: 01:16s - Published
Lyft's path to profit disappoints investors

Lyft's path to profit disappoints investors

American rideshare company Lyft forecast slower revenue growth this year, sticking to its profitability target date of 2021.

Gloria Tso reports.

Ride-sharing company Lyft said Tuesday (February 11) it still expects to lose money until the end of next year.

It's Uber's biggest competition in the United States, and it's doing better than expected.

The last quarter saw the company take in more than a billion dollars for the first time but it's refused to match Uber's new goal to reach profitability by the end of this year.

Lyft says it's sticking to its profitability target date of 2021 even though its rival is shortening its own timeline.

Investors were disappointed to hear that and Lyft shares fell 5.5 percent after hours.

While Lyft's ridership grew by more than 6% in the first half of 2019, growth in the second was less rosy, slowing to around 2.5%.

Lyft only operates in the U.S. and Canada with around 23 million users in the fourth quarter.

Uber, meanwhile, had over four times that in the same period -- over 100 million users around the globe.

The San Francisco-based companies have taken different approaches to hit profit.

Uber has been pouring money into side businesses which have not been profitable, like Uber Eats, a food delivery service.

But Lyft has remained solely focused on moving people around.




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Lyft's path to profit disappoints investors [Video]

Lyft's path to profit disappoints investors

American rideshare company Lyft forecast slower revenue growth this year, sticking to its profitability target date of 2021. Gloria Tso reports.

Credit: Rumble     Duration: 01:16Published