Lyft shares jump as buyback raised to $750m

Lyft announced an expansion of its share buyback plan to US$750 million in its first-quarter earnings report.

Following this announcement, the company’s shares rose by 5%, and at one point, increased by 10%.

The ridesharing company reported a 14% year-on-year revenue increase, totaling US$1.45 billion.

Net income reached US$2.57 million, or 1 cent per share, compared to a net loss of US$31.54 million, or 8 cents per share, during the same period last year.

Lyft’s rides increased by 16%, totaling 218.4 million. Meanwhile, the number of active riders rose by 11% to 24.2 million.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Lyft’s path to profitability reflects the maturing rideshare market

Lyft’s return to profitability represents a significant milestone after years of losses since its 2019 IPO.

The company’s earnings improvement from a loss of $0.88 per share in 2023 to a much smaller loss of $0.13 per share in 2024 demonstrates a gradual but meaningful financial turnaround 1.

This profit growth mirrors the broader rideshare industry’s evolution from growth-at-all-costs to sustainable business models, with free cash flow reaching $280.7 million this quarter compared to $766.3 million for all of 2024.

Despite controlling only about 29% of the U.S. ridesharing market compared to Uber’s dominant position, Lyft has maintained consistent growth with 16 consecutive quarters of double-digit booking increases 2.

The company’s focus on its core ride-hailing business contrasts with Uber’s diversification into food delivery and other services, highlighting different strategies for achieving profitability in the maturing marketplace.

2️⃣ FREENOW acquisition marks strategic pivot to international expansion

Lyft’s €175 million ($197 million) acquisition of FREENOW represents its first significant international expansion after operating exclusively in North America since its founding in 2012 3.

The deal dramatically increases Lyft’s addressable market by extending operations to 11 European countries and over 150 cities, with FREENOW’s established network of 6.3 million active passengers 4.