Lyft Inc. posted a surprise loss in the December quarter due to a $117.9 million legal settlement over driver classification, though it forecast gross bookings of $5.74‑$5.94 billion and adjusted EBITDA of $188‑$213 million, meeting expectations. The settlement pushed net loss to $9.7 million, versus a projected $79.5 million profit, causing shares to drop ~15% in extended trading. Despite the headwind, Lyft expects its North American rideshare business to accelerate growth for a third straight quarter, citing higher demand for premium ride types like Lyft Black and XXL. The company continues expanding internationally, having added European operators Freenow, TBR Global Chauffeuring and Gett UK to its platform. Lyft remains behind larger rival Uber, which also reported mixed third‑quarter results and warned of driver shortages abroad and holiday demand softness.
Lyft’s outlook follows a mixed third‑quarter performance. Gross bookings were $5.62 billion, slightly above estimates, but active riders and trips fell short. The firm highlighted premium ride popularity and its recent acquisition spree to boost scale. Shares closed at $17.84 before the extended‑trading decline.
The legal settlement and mixed rider metrics weigh on investor sentiment, yet Lyft’s in‑line guidance and focus on high‑value services suggest it is positioning for a stronger holiday period amid a competitive rideshare market.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing