LYFT's Gross Bookings Growth Gaining Pace: A Sign of More Upside?

Core Insights - Lyft is experiencing growth in gross bookings, driven by an increase in active riders, market expansion, and the success of its "Price Lock" feature [1][4][8] Financial Performance - In Q1 2025, Lyft's gross bookings rose 13% year-over-year to $4.6 billion, marking the 16th consecutive quarter of double-digit growth [2][8] - The number of active riders reached a record 24.4 million, reflecting an 11% year-over-year increase [2][8] - Lyft recorded a total of 218.4 million rides in Q1 2025, a 16% increase year-over-year [3][8] - For Q2 2025, Lyft anticipates gross bookings between $4.41 billion and $4.57 billion, indicating a growth of 10-14% from Q2 2024 [3] Market Strategy - Lyft's focus on less densely populated markets, such as Indianapolis, is yielding positive results [4] - The "Price Lock" feature allows users to avoid surge pricing during peak hours, enhancing customer satisfaction and demand [4][8] Competitive Landscape - Uber's gross bookings in Q1 2025 increased 20% year-over-year to $21.2 billion, while its Delivery segment rose 18% to $20.4 billion [5] - Grab reported a 16% year-over-year increase in On-Demand GMV in Q1 2025, with expected revenues between $3.33 billion and $3.40 billion for the year [6] Valuation and Estimates - Lyft's shares have increased by 8.3% over the past six months, outperforming the industry average decline of 8.1% [7] - The company trades at a 12-month forward price-to-sales ratio of 0.89X, indicating it is relatively inexpensive compared to its industry peers [9] - The Zacks Consensus Estimate for Lyft's earnings for 2025 and 2026 has been revised upward in the past 60 days [10]