Lyft’s stock fell 7.9% on Feb. 12 after reporting disappointing Q4 results and weaker-than-expected bookings guidance due to price reductions to remain competitive.

The ride-hailing company reported US$1.55 billion in revenue, slightly below the US$1.56 billion estimated by analysts, despite a 27% year-over-year increase.

Bookings totaled US$4.28 billion, missing the FactSet estimate of US$4.32 billion.

However, Lyft reported adjusted earnings per share of 29 cents, surpassing the forecast of 22 cents.

Chief financial officer Erin Brewer said that Lyft’s pricing cuts and discounts were necessary to stay competitive, impacting bookings by a low single-digit percentage.

The company projects next quarter’s bookings range from US$4.05 billion to US$4.20 billion, which is lower than the US$4.24 billion estimate.

Despite these challenges, Lyft reported 24.7 million active riders in the fourth quarter, exceeding expectations.

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