Is LYFT's Impressive Gross Bookings Growth a Sign for Further Upside?

Core Insights - Lyft continues to experience growth in gross bookings, driven by an expanding active rider base and the successful implementation of the Price Lock feature [2][3][5] Financial Performance - In Q3 2025, Lyft reported gross bookings of $4.8 billion, a 16% year-over-year increase, marking the 18th consecutive quarter of double-digit growth [3][10] - The number of active riders reached a record 28.7 million, up 18% year-over-year, and the company facilitated 248.8 million rides, reflecting a 15% increase [3][10] - For Q4 2025, Lyft anticipates gross bookings to grow by 17-20% year-over-year, projecting a range of $5.01 billion to $5.13 billion [4][10] Strategic Initiatives - Lyft's strategic focus on less densely populated markets, such as Indianapolis, is yielding positive results [5] - The Price Lock feature is designed to help users avoid surge pricing during peak hours, contributing to increased weekday ride-hailing demand as more employees return to offices [5] Industry Comparison - Uber reported a 19% year-over-year increase in mobility segment gross bookings, totaling $25.1 billion, and a 24% increase in delivery segment gross bookings, totaling $23.3 billion [6] - Grab's On-Demand GMV grew by 24% year-over-year, with expected revenues for 2025 between $3.38 billion and $3.40 billion, indicating 21-22% growth [7] Stock Performance and Valuation - Over the past six months, Lyft's shares have increased by 31.7%, underperforming the industry average of 73.2% [8] - Lyft trades at a 12-month forward price-to-sales (P/S) ratio of 1.1X, indicating a relatively inexpensive valuation compared to industry levels [11]