- The passing of California proposition 22 relived some uncertainty from Lyft’s long list.
- Continued cost savings have been driving share price growth over the last two months and look set to continue.
- COVID-19 is still crippling Lyft’s ridership going into 2021 with revenues still down 50% YoY and slowing improvement.
- COVID-19 brought a seismic shift in workplace location and travel habits potentially damaging Lyft’s rideshare market permanently.
Lyft (LYFT) provides a peer-to-peer marketplace for on-demand rideshare and transportation in the U.S. and Canada. In addition to rideshare, the firm provides both scooters/bikes in multiple cities, flexible car rental services for consumers and enterprise, and partnered with Waymo (an Alphabet (GOOG) subsidiary) to develop autonomous vehicles (AVs). Lyft’s share price has risen 110% since November 1st jumping from $23.19 to near $50.00, recovering back to pre-pandemic February levels. Recent share price gains were driven by improving vaccine news and the passing of proposition 22 (see detail below). However, revenue for the first nine months of 2020 is