What happened

Shares of Lyft (LYFT -6.82%) were moving higher today in sympathy with a strong report from rival Uber Technologies (UBER -3.13%) which seemed to boost expectations for Lyft's third-quarter earnings report, which is due out next week.

As of 11:58 a.m. ET, the stock was up 6.1%, while Uber had gained 11.4%.

So what

Uber said gross bookings jumped 26% in the quarter, or 32% in constant currency, while revenue jumped 72%, or 81% constant currency, aided by its acquisition of logistics management company Transplace and a change in its U.K. mobility business model.  

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the quarter soared from nearly break even in the quarter a year ago to $516 million, and the company reported free cash flow of $358 million.

Uber is much larger than Lyft, but Uber did well in the area in which the two companies compete directly, U.S. mobility services, or ride-hailing.

Uber said revenue in the U.S. and Canada jumped 89% to $5 billion, but that growth was helped by the Transplace acquisition. Gross bookings in global mobility, meanwhile, jumped 45% in constant currency, and adjusted EBITDA in the segment rose 65% to $898 million.

The results show Uber's profitability finally starting to ramp up after years of cash burn and challenges with the pandemic.

Now what

Uber's strong results don't necessarily imply the same for Lyft, but the improving profitability is a good sign for Lyft as it shows Uber is moving away from the kind of driver and rider incentives that led both companies to go deep into the red. 

The results also show Uber continuing to benefit from the economic reopening, which likely helped Lyft as well.

Investors will learn more when the ridesharing stock reports earnings after hours next Monday. Analysts are expecting a 23% increase in revenue to $1.06 billion and adjusted earnings per share of $0.08, up from $0.05 in the quarter a year ago.