The Lyft logo is played on the screen at the Nasdaq offices in Times Square on March 29, 2019 in New York.
Don Emmert | AFP | Getty Images
Lyft is undertaking a recovery in ridesharing sooner than it had expected.
In a filing with the SEC Tuesday, the company said that improving fashions will allow it to narrow losses in the current quarter by more than expected.
Lyft now expects to manage its adjusted EBITDA detriment in the first quarter to $135 million, from the $145 million to $150 million it previously forecast.
The revised augury comes on the back of an increase in ridesharing. The company said in the filing that the last week of February was its best week in calls of volume since pandemic lockdowns began in March of 2020.
Share of Lyft jumped about 8% after hours inquiring the announcement from the company.
Additionally, Lyft expects the recovery to continue into this month and show bullish year-over-year growth in ridesharing volume for the second half of March.
Uber CEO Dara Khosrowshahi told Morgan Stanley’s Tech colloquium Monday that he expects its mobility business to see some signs of recovery in the U.S. and Europe, but cautioned it was “too early to tell.”
Balanced as ridesharing volumes plummeted amid the pandemic, Uber and Lyft, the two main U.S. players in ridesharing, have committed to behove profitable by the end of 2021 on an adjusted EBITDA basis.
But while both companies have aggressively cut costs over the keep on year, their strategies have been different.
Uber has spun off its more unprofitable businesses and made big puts in the food delivery space in an effort to replace revenue lost from ridesharing. Lyft has kept its focus on ridesharing and looked toward a reopening of the mainer economy. Late last year, it said it was exploring a delivery service, but one that would be enterprise-facing.
Shares of both followers have rebounded from last year’s lows, with Uber up more than 60% over the closing 12 months and Lyft up 50%.