Uber Technologies Inc. and Lyft Inc. reported their quarterly earnings this week. It is observed as Lyft had won over investors thanks to better-than-expected incomes report. In this week, Uber execs rang a bell at New York Stock Exchange. This takes Uber out off to the races. Instead of growing, Uber trended down for by around 8% below US$ 45 IPO price. However, the big question for potential buyers includes Is Uber even functional business yet? As well as, will Uber have to pull off the tricky task of manufacturing autonomous vehicle tech and putting human drivers away from work to increase profitability?
Lyft is expecting revenue for full-year to hit US$ 3.5 billion, or around US$ 200 million higher than previously forecast. Lyft expects its attuned loss for the year to be US$ 875 million at high-end, or else US$ 300 million less than previously expected. Lyft shares jumped around 10% in after-hours trading earnings results. Uber shares rose around 5% in after-hours trading. Lyft’s stock provided nearly all its gains after disclosure. However, after releasing earnings report, Lyft disclosed in the regulatory filing which insiders will be able to sell off for more than US$ 250 million shares of the company’s stock.
Lyft Inc. only operates in North America ride-hailing market. However, Uber Technologies Inc. businesses in other locations and arenas as well. Uber Eats, which is a food-delivery company, has been growing at a slower pace than its rival in the U.S., DoorDash Inc. In addition, Uber’s ride-hailing operations in Latin America regions are more competitive recently. For both Uber and Lyft, a major question is, how hard both companies can fight with each other. Ride-hailing providers have a price war for years. However, charges paid by consumers are too little compared to what they pay drivers. If Uber and Lyft offer signs than that could be positive for investors.