LYFT - Embedded Expectations Analysis - 2020 11 04
Lyft, Inc. (LYFT:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.7x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to inflect positively, but management may be concerned about their product, investment returns, and their margin expectationsSpecifically, management may have concerns about employees' renewed focus on safety and the sustainability of rideshare growth. In addition, they may lack confidence in their ability to encourage riders to return to their platform through innovative products and features, drive long-term growth and shareholder returns via investments, and continually support the Prop 22 campaign. Furthermore, they may be concerned about how long it will take to return to normalcy in the business. Moreover, management may be overstating their expectations to lead the industry in long-term margins, and they may have concerns about the required number of rides to achieve profitability. Finally, they may be concerned about the disparity of regional activity across the US
Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company provides Ridesharing Marketplace, which facilitates lead generation, billing and settlement, support, and related activities to enable drivers to provide their transportation services to riders. The company also offers a network of shared bikes and scooters in various cities to address the needs of riders for shorter routes; Express Drive program, a flexible car rentals program which connects drivers who need access to a car with third-party rental car companies; and concierge for organizations to manage the transportation needs of their customers and employees.
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