(Reuters) – Lyft Inc (LYFT.O) on Wednesday posted higher-than-expected revenue and the ride-hailing company vowed further cost cuts to become profitable, saying ridership hit by the coronavirus pandemic had improved in late April.
FILE PHOTO: A Lyft driver wears a mask during the coronavirus outbreak, as he leaves passengers in the U.S. Capitol Hill neighborhood in Washington, U.S. April 1, 2020. REUTERS/Jonathan Ernst
Shares in Lyft rose over 18% in after-hours trading, but shares are still less than half the $72 price from their initial public offering last year. Shares of larger rival Uber Technologies Inc (UBER.N) were up 9%.
The first-quarter results offer a first look at the impact of strict stay-at-home orders to combat the spread of the virus in many of the ride-hailing industry’s largest markets.
Lyft’s earnings also serve as an indicator for the performance of Uber, which will report results on Thursday.
For April, rides were down 75% year over year but Chief Executive Logan Green said Lyft saw moderate week-on-week growth in ride requests starting in mid-April.
In the United States, rides rose 21% in the first week of May compared with a low point on April 12.
Ridership grew 25% in Atlanta, 35% in Chicago, 29%