Lyft Faces Stock Drop After Lower-Than-Expected Bookings Forecast

The ride-hailing company struggles with fierce competition from Uber and external disruptions, despite record revenue and profitability in 2024.

Lyft's Q1 gross bookings forecast of $4.05–$4.20 billion falls short of Wall Street's $4.26 billion estimate.
Shares dropped 12.5% in premarket trading after the announcement, with analysts expressing concerns over Lyft's ability to sustain growth and profitability.
Lyft attributes challenges to competitive pricing strategies against Uber and disruptions from wildfires and extreme weather in key markets.
Despite challenges, Lyft achieved record revenue of $1.55 billion in Q4 2024 and its first full year of positive free cash flow and profit.
The company plans to expand into autonomous vehicles, partnering with Marubeni to introduce Mobileye-powered robotaxis, potentially as early as 2026.