Although the stock is not rewarded today, there has been much to report on the report as the market has fallen and the recent 20% of LYFT hit its low.

Strong sales and active driver growth for the quarter point to market share gains, and the improving contribution margin shows better monetization and efficiency.

The combination of a healthy marketplace for carpooling, successful new offerings (scooters, shared rides) and improved monetization mean that the company is pursuing profitability much faster than expected.

Uber shares and Lyft papers in rally mode

However, the shares of the brokerage agents were buoyed earlier this week after the British bank HSBC issued a buy recommendation. The “price is right” at the two companies, Kahn wrote in a note to customers, the MarketWatch is present. Investing in the ailing industry would be worthwhile now. “We think that regulatory concerns are priced in while we continue to see a lot of optional product improvement benefits for Uber and Lyft,” it said.

Uber and Lyft should focus more on more profitable growth in the future, predicts Kahn. Because the rides have the potential to be “profitable”: “We think Uber and Lyft’s driving business activities can achieve profitability, […]” as does Uber Eats. In order to actually be able to generate profits, both Uber and Lyft would have to reduce sales and marketing costs, estimates Kahn. Instead, both companies would have to focus on using their fixed cost base. “In the area of ​​ride-hailing and food-delivery worldwide, we only see room for two big players and expect further consolidation in both sectors,” continued the HSBC analyst.