LYFT Witnesses Year-Over-Year Increase in Daily Ride Volumes
In a blog dated Mar 18, 2021, Lyft, Inc. LYFT stated that the company is experiencing positive effects of the recent decline in coronavirus cases in the United States.
The company, which has been seeing softness in ride volumes amid coronavirus concerns, witnessed the highest volume of rideshare rides for the week ending Mar 14 since March 2020. In fact, on Mar 17, it saw year-over-year growth in daily rideshare ride volume, for the first time in a year.
Further, Lyft anticipates rideshare ride volumes to surge more than 100% year over year this week as it begins to “lap the significant impact of COVID-19” on its business a year ago.
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The company continues to expect year-over-year growth in weekly rideshare rides, effective the week ending Mar 21, through the end of the year. However, this estimation assumes that COVID-19 conditions do not worsen.
Earlier this month, Lyft had provided a bullish update on its February ride trends. The company revealed that average daily rideshare rides increased 4% month over month in February despite ride volumes in the week ending Feb 21 being impacted by severe winter storms. On a further positive note, the week ending Feb 28 recorded the highest volume of rideshare rides since March 2020.
Seemingly, Lyft’s rides recovery is gaining momentum.
Zacks Rank & Key Picks
Lyft carries a Zacks Rank #3 (Hold) currently. Some better-ranked stocks in the Internet - Services space are Etsy, Inc. ETSY, Dropbox, Inc. DBX and Sohu.com Inc. SOHU. While Etsy sports a Zacks Rank #1 (Strong Buy), Dropbox and Sohu.com carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While shares of Etsy and Sohu.com have rallied more than 100% in a year’s time, Dropbox shares have gained more than 59%.
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