Do Lyft Shares Have Enough Lift for a Turnaround?

Why Lyft is not (necessarily) the same as Uber

To evaluate its turnaround prospects, investors need to understand the differences between Uber and Lyft. For one, Lyft has so far limited itself to one country. In contrast, Uber users can find it in about 70 different countries. Moreover, Lyft restricts the scope of its business to a greater extent, focusing exclusively on ride-sharing.

Uber's larger size points to a key challenge for Lyft

Such diversity seems to work in Uber's favor. An early criticism of Uber and Lyft was that high labor costs stood in the way of profitability, implying that both companies needed some degree of reliance on self-driving cars to succeed. Still, even in 2024, such technology is only available on a limited basis. Also, it appears that economies of scale have helped industry financials.

Should investors buy Lyft?

Given Lyft's current state, the stock could move higher, though it is not likely to become a second-chance stock for those who missed out on Uber. Still, it continues to grow, reduce its losses, and stabilize its business. However, Lyft's lack of international expansion and diverse business ventures like Uber may impede its path to success.