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Lyft revenue plummeted 60% in three months

Lyft revenue plummeted 60% in three months

Worse-than-expected Q2 earnings for Lyft

After the pandemic took over the world, the ride-sharing businesses crashed. That dip translated into a weak Q2 earnings report, as it did for Lyft.

It reported a loss of $1.41 per share, totaling $437.1 million. It topped the $339 million, or $1.05/share consensus.

Revenue figures came in at $339.3 million, 60% lower than last year’s $867 million.

The number of active riders decreased by 60% in Q2, from$21.8 million to $8.7 million.

Although it lost on auto vehicle rides, it gained in bike and scooter rentals. The rentals increased 200% in just three months, as people preferred “open-air” transportation. Lyft has a glimmer of hope for its business, as rides increased by 78% in July.

On top of the low figures, Lyft is under scrutiny as it has to classify its drivers as employees and not as contractors. Currently, the company is waiting to see if it wins an appeal for the injunction granted by the San Francisco Superior Court. According to Lyft, in case of losing, it might shut down the California operations. Its rival, Uber, said it would halt its service in the same state through November.

For the rest of the year, Lyft didn’t provide guidance, given the uncertainty surrounding the pandemic-induced crisis.

During today's pre-market session, it lost 0.45%. Since the beginning of the year, the stock lost 29.1%, while USA500 went up 4.4%.

Sources: cnbc.com, finance.yahoo.com, marketwatch.com

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