Mexican Media Brands
Lyft Targets Profitability by Q4 2021
Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.
#economics
Share
Ride-hailing giant Lyft Inc., which hasn’t had a profitable quarter since it launched in 2012, aims to get into the black by the end of 2021—a year earlier than industry projections.
The company is executing well and has a “clear path” to profitability, according to founders Logan Green and John Zimmer. They tell attendees of a Wall Street Journal conference in California Lyft will post a profit before interest, taxes, depreciation and amortization by the fourth quarter of 2021.
The forecasts buoyed the company’s stock price by 6.5% yesterday. But at less than $44 per share, Lyft is trading about 40% lower than its debut value of $72 in March.
Lyft lost $911 million last year, its first publicly reported financial period, despite doubling revenue to $2.2 billion. Continue growth has prompted the company to raise its full-year outlook for 2019 by 6% to $3.3 billion.
Lyft’s 2021 profitability timeline matches an updated forecast issued in August by Chicago-based Guggenheim Partners. The securities firm applauded Lyft’s growth plans, which focus on its core ride-hailing services in North America. The company’s strategy contrasts with rival Uber Technologies Inc.’s aggressive global expansion and push into more services, such as food delivery.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
