2024-05-20 14:39:22 ET
Summary
- Lyft's financial performance has improved somewhat as of late, but it still lags behind Uber in terms of growth, profitability, and scale.
- The company is focusing on brand marketing and values to differentiate itself, but it may not be enough to compete with Uber.
- The threat of automated taxis poses a significant risk to Lyft's future viability.
- Despite the attractive valuation at only 1.4x sales, multiple headwinds exist that could easily thwart returns.
- We rate LYFT a 'Sell'.
Over the last year or so, we've written extensively about Uber ( UBER ), the ride-share and delivery juggernaut that's got serious scale, improving margins & growth, and an incredibly strong network flywheel effect.
While we've recently turned a little less optimistic on the company on the basis of UBER's heightened revenue multiple and the threat of automated rideshare / robotaxi services, we're still generally positive on the company as a whole:
- Uber: Revenue Could Double By 2026
- Uber: $150 Per Share Is Not Unreasonable
- Uber: Tons Of Room To Run
- Uber: Are Robotaxis A Threat? (Rating Downgrade)
Read the full article on Seeking Alpha
For further details see:
Lyft: An Extremely Perilous Bet Despite Recent Progress