Lyft Targets Profitability by Q4 2021
Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.
#economics
Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.
The company is executing well and has a “clear path” to profitability, according to founders Logan Green and John Zimmer. They tell attendees of a Wall Street Journal conference in California Lyft will post a profit before interest, taxes, depreciation and amortization by the fourth quarter of 2021.
The forecasts buoyed the company’s stock price by 6.5% yesterday. But at less than $44 per share, Lyft is trading about 40% lower than its debut value of $72 in March.
Lyft lost $911 million last year, its first publicly reported financial period, despite doubling revenue to $2.2 billion. Continue growth has prompted the company to raise its full-year outlook for 2019 by 6% to $3.3 billion.
Lyft’s 2021 profitability timeline matches an updated forecast issued in August by Chicago-based Guggenheim Partners. The securities firm applauded Lyft’s growth plans, which focus on its core ride-hailing services in North America. The company’s strategy contrasts with rival Uber Technologies Inc.’s aggressive global expansion and push into more services, such as food delivery.
RELATED CONTENT
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Auto vs. Tech: Guess Who Wins
Matthew Simoncini, president and CEO of Lear Corp., provided some fairly compelling figures this week at the CAR Management Briefing Seminars that show just how out-of-whack the valuations of tech companies are vis-à-vis auto companies.