Please ensure Javascript is enabled for purposes of website accessibility

Lyft Sees Ridership Begin to Pick Up in April

By Donna Fuscaldo – Updated May 7, 2020 at 12:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite an uptick in April, all told rideshares at Lyft were down 75% for the month.

Lyft (LYFT 5.99%), the ride-hailing start-up that just laid off 17% of its workforce, is seeing demand for its core business begin to pick up again in April, albeit very slowly. 

In the first-quarter earnings results Lyft reported late Wednesday, revenue jumped 23% year over year. Lyft said that while rides were down 75% year over year in April, that figure appears to have hit a bottom in the second week of the month. 

A woman waiting for a rideshare.

IMAGE SOURCE: GETTY IMAGES.

"We have since seen three consecutive weeks of week-on-week growth," said Lyft CEO Logan Green on the tech stock's earnings conference call . "But clearly, this is from a low absolute ride base, and rides last week were still down more than 70% year-on-year." 

In the U.S. Lyft said it's seen a 21% uptick in rides during the first week of May. Rideshares in Atlanta were up 35% in the first week of May, while they increased 35% in Chicago, and were up 29% in Houston. In New York City, hit hard by the COVID-19 pandemic, rideshares were 22% higher than April. 

Green wouldn't predict the timing or trajectory of a recovery but warned the tech stock will be negatively impacted even as shelter in place and travel restrictions are lifted, as social distancing alters consumer behavior. 

Lyft also said it will cut costs further in its quest to make a profit. For 2020, the ride-hailing company is reducing its 2020 capex from $400 million to $150 million, marking a 63% decline. It also found more areas where it can reduce fixed costs, aiming to lower them by about $300 million annually. The company refrained from offering up a forecast for the remainder of 2020, pointing to the uncertainty as to when the virus will be contained. Lyft CFO Brian Roberts did say the ridesharing company expects to keep its second-quarter adjusted EBITDA loss to less than $360 million.

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lyft, Inc. Stock Quote
Lyft, Inc.
LYFT
$13.72 (5.99%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.