LYFT Inc. (NYSE:LYFT) has reported that it had its best performing week since the COVID-19 pandemic lockdowns began last year. The company is also witnessing positive effects following the decline in COVID-19 cases in the US after it saw positive YoY daily rides growth for the first time in a year.
Lyft record highest ridesharing ride volume in a year
Rid-sharing companies were among the most affected companies following the outbreak of the COVID-19 pandemic. However, the companies are starting to see a rebound from pandemic lows as vaccine campaigns rollout and states start lifting restrictions. This has led to more people feeling comfortable to return to work or travel, thus a surge in daily ride volume. On March 17, 2021, the company’s shares inched 0.23% higher, and so far, the shares are up 250% YoY, while Uber Technologies Inc.’s (NYSE:UBER) shares are 198% up YoY.
For the week ending March 14, the company reported a high volume of ride-hailing rides, and now it expects rides to surge over 100% the coming week as it laps most of the COVID-19 pandemic’s impact. Lyft is optimistic that rideshare rides will continue increasing throughout the year, but the assumption depends on COVID-19 conditions not worsening.
Improving conditions to help Lyft lower losses this quarter
At the beginning of the month, the company offered a bullish update on its ridesharing ride trends for February. Lyft said that ride volumes grew 4% month over a month even though ride volumes for the week ended February 21 were impacted significantly by winter storms. However, ridesharing rides volume recovered, and the company recorded the highest number of rides for the week ending February 28, recording the highest ride volume since March last year.
In its recent SEC filing, Lyft said that it expects the improving trends to help it reduce losses in the current quarter than expected. Lyft said that it will manage its adjusted EBITDA loss in Q1 2021 to around $135 million from its previous projection of a loss between $145 million and $150 million.