Lyft (LYFT) To Report Q4 Earnings Today: What To Expect
Zacks Investment Research | Feb 10, 2020 10:31PM ET
Lyft, Inc. (NASDAQ:LYFT) is set to report fourth-quarter results on Feb 11, after market close. Lyft’s top line is likely to have benefited from high customer adoption. Its cheap pricing strategy is expected to have helped it gain market share over its rivals.
However, its bottom line is likely to have been affected by costs related to investment in technology development and insurance costs.
Overall, investors expect Lyft to have performed well, since its prime rival, Uber Technologies, Inc. (NYSE:UBER) reported upbeat fourth-quarter results earlier this month. Uber’s revenues grew 43% year over year, excluding currency fluctuations, primarily boosted by the ridesharing business.
Reduced Pricing & Rental Service
Lyft’s decision to enter the car rental segment along with the self-driving ride-sharing cars services is expected to have been a positive. Lyft’s initiatives and price-reducing strategies are expected to have given it a boost.
The company has been constantly reducing prices and offers cheaper shared rides to its customer. This has not only attracted more customers but also helped in improving its profit margin.
Additionally, the car rentals business is in perfect harmony with the ride-sharing segment and may help the company come up with promising results. And, why not? Other car rental players like Avis Budget Group, Inc. (NASDAQ:CAR) and Hertz Global Holdings, Inc. (NYSE:HTZ) generated operating income in the past year.
Further, the Zacks Rank #2 (Buy) company has an edge over its larger rival Uber in the self-driving cars business, thanks to its partnership with Alphabet Inc. (NASDAQ:GOOGL) . Alphabet’s Waymo helped Lyft develop autonomous driving technology. The self-driving car business has been operating in Arizona since June 2019, without any casualties. You can see Zacks Investment Research
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