Lyft’s Resurgence: From Underdog to Contender in Ride-Hailing

Lyft (LYFT 0.17%), long overshadowed by its larger rival Uber, is now commanding investor attention with a remarkable turnaround. The company posted record bookings, GAAP profitability, and nearly $1 billion in trailing free cash FLOW in its latest quarter—a stark contrast to its earlier struggles.

The ride-hailing firm operates an asset-light model, relying on commissions from its two-sided marketplace connecting drivers and riders. Its revenue streams extend to micromobility solutions like scooters, strategic partnerships with airlines and credit card issuers, and in-app advertising. Unlike Uber, Lyft maintains a narrower geographic focus—primarily the U.S., Canada, and select European markets—which may prove advantageous in a tightening competitive landscape.