Skip to main content

Lyft couldn't pivot to food delivery or overseas markets as the coronavirus decimated ride-hail in the US. Here's what to expect from its earnings report. (LYFT)

* Lyft will reveal its second-quarter financial results on Wednesday afternoon.  * Unlike Uber, which reported last week, Lyft didn't have a delivery arm to lean on as the coronavirus decimated rides requests.  * Analysts expect the company to report its lowest revenues in more than three years.  * Visit Business Insider's homepage for more stories. Lyft will report its second-quarter results on Wednesday afternoon, providing the first comprehensive look at just how badly the coronavirus pandemic hurt the ride-hailing company's business from April through June. Analysts polled by Bloomberg expect the company to post its lowest revenue in more than three years. Here are the numbers: * Revenue: $334 million, a 65% decrease from the first quarter. * Net income: $301 million, a 10% decrease from the first quarter. * EPS: $-0.99, a 10% decrease from the first quarter. The smaller cash burn is likely thanks in part to massive cost cutting efforts by Lyft this spring, including a 17% trim to its workforce resulting in about 1,000 layoffs. "We expect Lyft to execute well on the cost discipline side," Doug Anmuth, an analyst at JPMorgan, said in a note to clients. Lyft doesn't have a food-delivery arm to lean on, unlike Uber, which for the first time reported revenues for its Eats business that topped its core ride-hailing unit last week. Plus, Lyft only operates in North America, so the continued spread of COVID-19 in the United States has an outsized effect on its business.  Lyft said in June — its most recent update — that some US markets were beginning to show meaningful increases after bottoming-out in March. Austin, for example, was up 73% in May over April. But the US' pandemic hasn't slowed much since that update, and data from Chase credit card suggests that the initial uptick seen by Lyft was short lived. "We believe that after weeks of rideshare volume improvements into early June, recovery has slowed, stalled, or reversed in some cities," JPMorgan analysts wrote earlier in August. And like Uber, Lyft faces significant headwinds in California where the two companies are sparring with state regulators and labor activists about their drivers' classification as contractors versus employees. Shares of Lyft are down nearly 30% since the beginning of 2020. Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
https://bit.ly/3ah9yjU

Popular posts from this blog

Here's an exclusive look at the pitch deck London fintech Lanistar used to raise $19 million at a $190 million valuation

* London-based fintech startup Lanistar has raised a £15 million ($19 million) funding round from Milaya Capital.  * Founded in 2019, Lanistar is building a personal financial management platform that will launch later in 2020.  * "We're expecting a huge amount of growth upon our launch and have already seen strong interest among our sign ups," Gurhan Kiziloz, founder and CEO of Lanistar, told Business Insider. * Visit Business Insider's homepage for more stories.  The coronavirus lockdown in the UK has brought the importance of managing money into sharp relief. A recent study from Money.com shows that 71% of UK households have saved cash during lockdown, and, with uncertainty about jobs and the economy looming, money management is now front of mind for many. Lanistar, a banking platform with a focus on personal finance, is one company offering tools for consumers to better manage their money. It has just raised a £15 million ($19 million) funding round from Mil...
Read more

Tokyo installed see-through public toilets in a park to let people inspect their cleanliness before using them, at which point the glass turns opaque

* Two see-through bathrooms have been installed in public parks in Tokyo. * They are made from "smart glass" designed so people can see how clean they are inside before using them. The glass turns opaque when the bathroom is locked and in use. * The stalls are part of a project that is redoing 17 of the city's public bathrooms with different designers to make them more accessible and appealing. * The goal is to fight assumptions that public toilets are "are dark, dirty, smelly, and scary," said the nonprofit foundation behind the project. * Visit Business Insider's homepage for more stories. Tokyo has installed two see-through bathroom facilities in public parks, allowing people to see how clean they are before deciding to use them, at which point they turn opaque. The bathrooms are made of colored "smart glass," which turns opaque when the stalls are locked, said Shigeru Ban, the architect behind the designs. You can see how it works her...
Read more

Bill Gates says the world would need as many as 14 billion doses of a coronavirus vaccine to stop the virus

* The world could need as many as 14 billion doses of COVID-19 vaccines, Bill Gates said on Thursday in a blog post about the race to develop a way to make people immune to the disease. * "We need to make billions of doses, we need to get them out to every part of the world, and we need all of this to happen as quickly as possible," Gates said. * Gates said he had his eyes on eight to 10 promising candidates, adding that healthcare workers and people in low-income countries should be first in line once we find one that works. * While potential vaccines are progressing with historic speed, they're still months, or even years away, and the biggest challenge lies ahead in proving whether they are safe and effective in humans. * Visit Business Insider's homepage for more stories. Bill Gates believes we may eventually need to produce as many as 14 billion doses of COVID-19 vaccines globally and that we're anywhere from nine months to two years away from making tha...
Read more