Lyft Inc. said Tuesday that the ride-hailing recovery is progressing after a steep drop in demand because of the COVID-19 pandemic.
Lyft LYFT, +3.90% said in a filing with the Securities and Exchange Commission that rides rose 7.3% in August from July (although August rides were down 53% year over year), and that in the week ended Sept. 6, it saw the highest number of rides since April. That brings its decline in rides to less than 50% year over year, the company said. In addition, Lyft said its Canadian business — its only operations outside the nation — was rebounding more quickly than its U.S. business, with weekly rides in Vancouver reaching a record high in the week ended Sept. 6.
The company also said it spent less on driver incentives in August as more drivers returned to its ride-hailing app.
Those numbers prompted the San Francisco-based company to say it now expects that its year-over-year change in revenue will outperform the change in rides in the third quarter that ends Sept. 30. Lyft also said its adjusted Ebitda loss for the third quarter will be less than $265 million, compared with an adjusted loss of $128.1 million in the same period a year ago.
See: Lyft revenue and riders fall by more than half, and California could soon be cut off
In its filing, Lyft also said it put an additional $17.5 million into the Proposition 22 campaign, the California ballot measure that aims to avoid complying with a new law that would mean classifying its drivers as employees. Instead, Lyft and larger rival Uber Technologies Inc. UBER, +3.24%, as well as other companies that rely on independent contractors, are proposing to exempt gig workers from the law.
See: The different routes Uber and Lyft could take as they fight California law
Amid another broad decline for tech stocks Tuesday, with the Nasdaq Composite Index COMP, -4.11% falling 4.1%, Lyft shares rose 3.9% to $30.10, while Uber shares rose 3.3% to $34.32. Both stocks fell roughly 2% in after-hours trading following the filing.
Originally published on MarketWatch