Lyft has just announced that its second quarter business results did not meet analysts' expectations, with revenue reaching 1.59 billion USD, lower than the estimated 1.61 billion USD. The company's stock fell nearly 9% in the after-hours trading session on August 6. The decline is said to come from the declining demand for travel in the US and increasingly fierce competition with Uber - a larger rival that is effectively exploiting the platform for integrating ride-hailing, food delivery and grocery services.
However, Lyft still achieved the adjusted core income in the quarter of 129.4 million USD, exceeding the average forecast of 124.5 million USD. The forecast of core income for the third quarter from $ 125 million to $ 145 million is also in line with Wall Street's expectations.
To find new growth momentum, Lyft is actively implementing partnerships and expanding the market. The company has recently completed a deal to buy the Free Now platform in Europe for nearly 200 million USD, and signed an agreement with Baidu to put Chinese self-driving taxis into operation in the US.
Lyft also announced a partnership with United Airlines, allowing passengers to accumulate points for every Lyft trip, expected to launch later this year. In addition, the company continues to maintain linkages with names such as DoorDash and Chase to increase its presence in the digital ecosystem.
In the third quarter, Lyft aims to have revenue from trips reach 4.65 - 4.80 billion USD, far exceeding the analysts' estimate of 4.59 billion USD. The company also targets small and medium-sized cities, which still rely on personal cars as a way to expand market share amid stagnant growth in large cities.
