In the third quarter of 2020 Lyft
saw its revenue jump 47%, to nearly $500 million, compared to the three months
prior. But that’s still 48% less than it was in the third quarter of 2019.
The company says the revenue
growth reflects “an improvement in active riders and ride frequency.”
Active riders grew to 12.5
million in the period, up 44% from the second quarter of this year but about
half the level of 22.3 million in Q3 2019.
Revenue per active rider
increased 2% compared to Q2, which the company says is an indication of greater
Adjusted EBITDA was a loss of
$240 million – nearly twice as much as the loss of $128 million in the same
period one year ago but an improvement over the most recent outlook that projected
a $265 million loss for this quarter.
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Adjusted EBITDA loss margin
for Q3 was 48% versus 13.4% in the third quarter of 2019.
“Bikes and scooters were a bright spot during the quarter, further
validating our diversified approach to transportation,” says John Zimmer, Lyft
co-founder and president in a call with analysts to discuss the quarterly
“Bike and scooter rides increased quarter over quarter, as
did revenue, which was up roughly 40% collectively, reflecting their increasing
popularity during the pandemic along with favorable seasonal trends. We also
continue to make inroads with our electric bike fleet, which is now available across
The company says it is focused on achieving adjusted EBITDA
profitability by Q4 of 2021.
According to CFO Brian Roberts, this will be achieved using
an “extremely disciplined approach to 2021 planning” that is driving fixed cost
savings – already of $300 million - and will enable it to reach adjusted EBITDA
profitability with 30% fewer rides than in the guidance it originally issued in
“We are going to emerge on the other side of COVID
structurally more profitable per ride,” Roberts says.
and CEO Logan Green says the company will continue to look for ways to enhance
the value of its Lyft Pink membership program. In early October, it announced
Lyft Pink members will now have access to unlimited free restaurant delivery through a partnership with GrubHub.
Last week, Lyft competitor Uber reported a net loss of $1 billion for the third quarter of 2020.