Lyft's third quarter revenue increased 63 percent year over
year to $955.6 million, though its net loss deepened on higher compensation and
insurance costs.
During the quarter, the number of active riders was up 28
percent year over year to 22.3 million, and the revenue per active rider was up
27 percent to $42.82, Lyft reported. The company expects similar levels of
growth for the full year 2019.
Growing corporate business relationships, which co-founder
and president John Zimmer in an earnings call identified as a "$25 billion
addressable opportunity," should be a larger driver of future revenue
growth. An integration with Concur during the third quarter, in which rides are
fed directly into the Concur expense reporting platform, has been one such
driver, he said.
"In just the first month, we have seen significant
adoptions by companies, with more than 200,000 employees now enabled to use
this feature," Zimmer said. "Partners are happy to see this
integration, and our sales cycle has been much faster now that we offer
it."
In addition, Lyft has been making platform tweaks to
increase ridership, co-founder and CEO Logan Green said. A redesign in recent
weeks made all the various available transportation modes—standard rides,
shared rides, bikes and scooters, for example—more visible. Another feature,
Fast Match, has set up distinct Lyft pickup areas at five airports, including
recent additions Los Angeles and San Diego, away from the busier general pickup
areas, which decreases wait times, he said.
"This early success is particularly encouraging, as
airport riders tend to be higher value for our business," Green said.
"We'll be launching in New Orleans in November and are in active
discussions to expand this to more airports around the country."
Lyft reported a$463.4 million loss in the third quarter,
compared with a $249.2 million loss in the third quarter of 2018. That loss
includes $246.1 million in stock-based compensation and payroll taxes related
to that as well as $86.6 million related to changes in insurance regulations.
Total costs and expenses were up 69.4 percent to $1.4 billion, including a
nearly 274 percent increase year over year in research and development costs.
Lyft earlier this year projected that 2019 would
be its peak loss year, and Green said the company is on a path to have
positive earnings by the fourth quarter of 2021.
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