Lyft reported on May 9 that its first-quarter revenue increased by 14 percent to $1.65 billion, driven by new partnerships with United Airlines, Chase, and DoorDash. Despite this growth and a record share of rides from these collaborations, the company’s shares fell nearly three percent in after-hours trading and are down 27 percent for the year.
The rise in Lyft’s revenue highlights ongoing competition in the rideshare industry as companies seek to boost ridership through strategic alliances. However, winter storms in the Northeast reduced ride growth by more than three million trips during the quarter, contributing to a shortfall compared to Wall Street forecasts.
Active riders on Lyft rose by 17 percent to reach 28.3 million, while gross bookings climbed by 19 percent to $4.95 billion—both exceeding analyst expectations. The company projects second-quarter gross bookings between $5.3 billion and $5.43 billion, aligning with analyst estimates of $5.32 billion. Lyft also said its driver fuel-relief program launched in March will have an immaterial effect on second-quarter results.
Other major gig economy firms also reported quarterly updates: DoorDash expects to spend over $50 million this quarter for gas-price relief for U.S. and Canadian drivers after national average gas prices rose sharply; Uber CEO Dara Khosrowshahi said autonomous AI agents now produce about ten percent of Uber’s code changes as the company slows hiring and increases investment in artificial intelligence.
A recent op-ed published in a local newspaper argued that fares paid for driverless rideshare services do not circulate within local economies like those earned by human drivers do—a point fueling debate about automation’s impact on communities and small businesses reliant on driver income.
