Ride-hailing company Lyft hits a rough patch
The ride-hailing company Lyft continue to post losses despite revenue growth.
The San Francisco-based company lost $664.2 million in its second quarter despite posting revenue of $867.3 million.
More than a third of the loss, or $296.6 million, came from stock-based compensation Lyft paid out after its IPO in March. The company also lost $141.1 million due to changing requirements for liabilities for insurance.
The company’s growth in active riders and revenue per active rider was better than expected, which drove its revenue growth, said Logan Green, co-founder and chief executive officer of Lyft, in a news release. Lyft’s revenue per active rider was $39.77, up 22 percent compared to the same time last year.
“We remain focused on reshaping transportation and we are pleased with the continued improvement in market conditions,” Green said. “This environment along with our execution is translating to strong revenue growth and sales and marketing efficiencies.”
Uber, which is Lyft’s main and much larger rival, is set to report earnings Thursday.