Lyft and Uber have faced driver shortages over the last year. The strain on supply has led to longer wait times and spiking prices for consumers. One research firm estimates that the cost of an average ride-share trip has jumped 92% from Jan. 2018 to July 2021.
Driver capacity was down around 40% last quarter. And the ride-hailing giants are investing heavily in driver wage and benefit increases to incentivize them to return to the platforms. In Q2, Lyft increased its investments in incentives 92% quarter over quarter to roughly $375 million to attract more drivers.
Here are what analysts are projecting for both companies:
Uber
According to projections from 44 analysts, Uber has a consensus rating of Strong Buy, with a rating score of 4.3/5. The consensus average1-year revenue growth estimate is 45.89%, and the earnings growth estimate is 26.74%. The current market price is $ 45.12 while the 1-year average price target is $ 68.01 - that represents a 50.73% upside potential.
Lyft
According to projections from 37 analysts, Uber has a consensus rating of Buy, with a rating score of 3.8/5. The consensus average1-year revenue growth estimate is 39.31%, and the earnings growth estimate is 276.92%. The current market price is $ 52.96 while the 1-year average price target is $ 69.92 - that represents a 32.02% upside potential.
Source: Wall St Rank
Self-driving cars are coming to Lyft's vehicle fleet thanks to a partnership with Ford. On July 21, the ride-sharing company made public a deal with the Detroit automaker and Argo AI to launch autonomous vehicles by the end of 2021.
Submitted November 12, 2021 at 11:06PM by amritrupa https://ift.tt/3n7UHAq
