Lyft Reports Strong Revenue Growth, $1.1 Billion Loss
After being public, Lyft Inc. encounter an important growth of $776 million in its first quarterly report, or about 95% from the previous year. However, losses of 1.1 billion continue to be present due to $859 million of stock based compensation for being public in March.
This result was unexpected and will continue to grow as Lyft portrays itself as "the faster-growing-ride-hailing service" compared to Uber. Lyft even got a partnership with Alphabet Inc, the selft driving car unit Waymo. They will soon let people use their robot taxis in Phoenix using the Lyft app.
Some of the losses were due to rider and driver subsidies, as well as $227 million spent by the company on sales and marketing (30% of revenue).
However, Lyft expects its revenue to slow for the rest of the year, or at least $800 million in the second quarter and $3.3 billion for the year.
However, Lyft expects its revenue to slow for the rest of the year, or at least $800 million in the second quarter and $3.3 billion for the year.
I liked reading the article as I felt like Lyft took a risk by becoming public. I was also amazed to see how much they grew in only three months. I am looking forward to seeing more growth in the future and maybe expend their services in new things. In a competitive market, they were able to distinguish themselves from their other competitors such as Uber. They are expanding their idea such as associating with Alphabet Inc to generate more revenue.
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