Lyft projects upbeat bookings in fourth quarter on strong demand from weekday commuters
Nov 6 (Reuters) -Lyft LYFT.O forecast current-quarter gross bookings above estimates after beating September-quarter sales on Wednesday as more people return to offices, indicating steady demand for ride-hailing services.
As more companies enforce return-to-office policies, workers are increasingly turning to app-based taxi services such as Lyft and Uber UBER.N for their daily commute, leading to a surge in weekday demand for ride-hailing services.
While Uber last week reported better-than-expected third-quarter revenue, its forecast for the holiday quarter fell short of analyst estimates, disappointing investors.
Despite Uber's dominant position in the industry, analysts and investors anticipate Lyft to maintain its strong second-place standing.
Lyft has been investing in strategies to attract and retain more drivers, aiming to solidify its market position and capture a larger share of the market from Uber.
Revenue surged 31.5% to $1.52 billionin the quarter ended Sept. 30, surpassing analysts' average estimate of $1.44 billion, according to data compiled by LSEG.
It expects gross bookings for the year to grow about 17%, higher than Wall Street's expectation of 16.3%.
Earlier in the day, Lyft said it would partner with Mobileye MBLY.O and two other companies in the robotaxi industry to bring self-driving cars onto its ridehail platform and bolster research and development in the sector.
Lyft has implemented several initiatives this year to attract and retain more drivers, including guaranteed minimum earnings and higher pay for longer trips, as it seeks to meet rising demand and compete with Uber.
Lyft said it expects gross bookings between $4.28 billion and $4.35 billionin the fourth quarter, aboveestimates of $4.23 billion.
It forecast current-quarter core earnings of $100 million to $105 million, higher than expectations of $85.1 million.
The company's adjusted earnings before interest, tax, depreciation and amortization of $107.3 millionin the third quarter, beating expectations of $94.4 million.
Reporting by Akash Sriram in Bengaluru; Editing by Anil D'Silva
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