Lyft gets boost from improving outlook
Lyft said it sees an improving outlook in its ride-hailing business, which will mean more limited losses as it seeks to achieve profitability
Lyft shares gained Wednesday after the US ride-hailing giant said it sees "positive momentum" that will help the company cut losses over the rest of 2019.
The San Francisco-based Uber rival said its loss in the second quarter more than tripled from a year ago to $644 million including stock compensation expenses.
But revenue rose 72 percent to $867.3 million, and the company raised its outlook for the coming month.
Shares rose 1.3 percent in after-hours trade.
"We remain focused on reshaping transportation and we are pleased with the continued improvement in market conditions," said chief executive Logan Green.
"This environment along with our execution is translating to strong revenue growth and sales and marketing efficiencies. As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected and we are pleased to have updated our outlook."
Lyft said the number of "active riders" in the quarter rose 41 percent from a year ago to 21.8 million.
It forecast revenue of $900 million to $915 million.
The report comes a day before results from Uber, Lyft's larger rival, with both firms struggling to achieve profitability as they disrupt traditional local transport markets.
Both ride-sharing groups made their stock market debut earlier this year and have seen their shares decline since.
