Diverging businesses: Uber vs Lyft in six graphics

By Tina Bellon

(Reuters) – Lyft Inc’s selection to remain on the slender ride-hail street worries traders as its bigger rival Uber Applied sciences Inc explores extra worthwhile paths, akin to changing into a meals supply large in the course of the pandemic.

Lyft shares plummeted greater than 30% on Wednesday after an earnings report made traders query whether or not it may compete with Uber.

Each tech corporations’ shares have plunged since they went public in 2019, however whereas Uber has dropped round 35% in worth, Lyft is down greater than 70%.

Graphic – Uber and Lyft wrestle to carry inventory market worth : https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyagwqvw/Pastedpercent20imagepercent201651851998260.png

Analysts had feared that the Uber Eats supply enterprise, launched in 2014, would by no means earn money. Its worth grew to become clearer in the course of the pandemic as a surge in meals supply orders offset plummeting ride-hail demand.

Uber additionally boosted income at its freight trucking division with a $2.25 billion acquisition of a logistics firm.

Lyft additionally owns bike and scooter-share networks, however doesn’t escape the income from these companies.

Graphic Uber’s income outstrips Lyft’s – https://graphics.reuters.com/UBER-LYFT/INVESTORS/zjvqkmgoxvx/chart.png

Whereas Lyft achieved working revenue 1 / 4 sooner than Uber, Uber’s ride-hail enterprise had already been worthwhile for years on an working bases, as measured by adjusted Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization (EBITDA). Within the newest quarter, Uber’s whole working revenue surpassed Lyft’s.

“Uber has grand ambitions to turn out to be a one cease transport hub for the world, and that technique of diversification into different sectors is being nicely obtained,” mentioned Hargreaves Lansdown analyst Susannah Streeter.

Graphic : Uber’s ride-hail service is extra worthwhile – https://graphics.reuters.com/UBER-LYFT/INVESTORS/zdvxogwjnpx/chart.png

Uber’s skill to generate considerably increased working earnings from its ride-hail section can partially be defined by its pricing technique and energy: the per-mile costs it prices for U.S. journeys are increased than Lyft’s.

Whereas each corporations regulate costs at related occasions and proportions, Lyft on common has been charging 10% much less on a per-mile foundation than Uber, an evaluation of e-mail receipt knowledge by analysis agency YipitData confirmed.

The businesses additionally differ on common driver pay. Uber mentioned these on the street for greater than 20 hours per week earned a mean of $39 an hour within the first quarter, together with suggestions and a gasoline surcharge. Lyft on Tuesday put March driver common earnings at $24 together with suggestions, however excluding a 55 cent per-ride gasoline cost.

Graphic – Uber ride-hail costs outstrip Lyft’s: https://graphics.reuters.com/UBER-LYFT/INVESTORS/zdvxoggngpx/chart.png

Meals supply has allowed Uber to develop its buyer base, as lots of these prospects later use the app to e-book rides.

Lyft, which in contrast to Uber solely operates in america and Canada, has seen person progress stagnate and its energetic riders within the first quarter stay 13% beneath the pre-pandemic first quarter of 2019. Uber’s person base elevated 23% throughout the identical timeframe.

Graphic – Uber’s energetic person base reveals quicker progress: https://graphics.reuters.com/UBER-LYFT/INVESTORS/gdvzyaemkpw/chart.png

However Uber’s large investments and several other acquisitions within the supply and freight sectors have eroded its money pile a lot quicker than at Lyft.

Uber’s unrestricted money is simply a 3rd of its peak quantity in mid-2019, and regardless of its considerably bigger measurement, Uber solely has double the money at Lyft.

Uber on Wednesday informed traders it is going to be full-year money stream constructive in 2022 for the primary time in its 13-year historical past.

Each corporations considerably reduce money burn over the pandemic.

Graphic – Uber’s shrinking money pile remains to be bigger than Lyft’s : https://graphics.reuters.com/UBER-LYFT/INVESTORS/byvrjndqnve/chart.png

(Reporting by Tina Bellon in Austin, Texas; further reporting by Noel Randewich in San Francisco; enhancing by Peter Henderson and Richard Chang)