Lyft first became profitable on an adjusted EBITDA basis in Q2 2021, meaning that the company could cover its operating expenses and make a profit before interest, taxes, depreciation, and amortization. However, Lyft is still not profitable on a net basis - the company reported a net loss of $251.9 million in Q2 2021.

Pros and Cons of Lyft and Uber Uber can be less expensive than Lyft for the average journey - research suggests that Uber is the cheaper company, with the average trip costing $20 compared with the $27 you would spend for an average Lyft trip.

Revenue per active rider declined year-over-year as Lyft cut prices for riders. Lyft had become more expensive for consumers than rival Uber because it was slower to respond to a yearslong driver shortage after the U.S. reopened from Covid-19 lockdowns. The short supply of drivers pushed up the prices for its rides.

Lyft generated $4.09 billion revenue in 2022, with strong revenue growth each quarter but slower than in 2021.

The cost of a ride from a ride-sharing app like Uber or Lyft increased 92% between January 2018 and July 2021, according to Rakuten Intelligence. Many riders have also noticed increased wait times for rides. The main reason is a shortage of drivers.

While both services look identical, there are major differences. Uber is richer in features and available in more cities. Yet Lyft is more transparent in its receipts about the details of a trip, which can help consumers understand when prices increase; Uber's opaque receipts could leave people perplexed.

Second Quarter 2023 Financial Highlights Net loss of $114.3 million compares with $187.6 million in Q1'23 and $377.2 million in Q2'22. Net loss includes $116.6 million of stock-based compensation and related payroll tax expenses. Net loss margin of 11.2% compares with 18.8% in Q1'23 and 38.1% in Q2'22.

Uber dominates U.S. market share By April 2022, Uber sales exceeded their pre-pandemic levels and remained elevated throughout most months of 2022 and into 2023. Meanwhile, sales at Lyft are yet to reach their pre-pandemic levels as of September 2023.

Lyft mainly generates revenue from the drivers; it is mostly in the form of the commissions paid and service fees for using the ride-sharing marketplace connecting riders with drivers successfully.

Young adults are most likely age group to use ride-sharing services. Forty-five percent of adults aged 18 to 29 say they use ride-sharing services such as Uber and Lyft, whereas this drops to 36% among those 30 to 49 years old, 23% of those aged 50 to 64 and 13% of those aged 65 or older.

Although Uber and Lyft say that tips aren't required, there are some reasons why it makes sense to tip your driver. Many drivers with families depend on tips to supplement their income since the median income for drivers falls below the average living wage for a family of four.

In terms of revenue, Uber is about 10 times the size of Lyft. Granted, more revenue means Uber is spending more on variable costs like driver compensation and administrative support. More revenue, however, also means Uber can spend more on research and development, which in turn maintains its technological edge.