Still, investors are uncertain about how to compare the two. Besides the different components of their businesses, with Uber investing in its freight and meal delivery services on top of ride hailing, their financials are difficult to stack up.
Wedbush Securities analysts gave Lyft a neutral rating on Friday with a 12-month price target of $80, saying concern it has heard from investors prior to Uber’s S-1 were not eased much now that it’s public.
“And now that Uber’s S-1 was released after the close yesterday we think investors don’t yet have a whole lot more clarity on some of the key comparable metrics,” the analysts wrote. “Uber does not break out its metrics between the US and international beyond noting that 52% of bookings and 74% of rides come from outside the US. Additionally, Uber defines its rider metrics by combining both rideshare and Uber Eats riders, so generating metrics like billings per ride, revenue per ride and profit per ride are not fully comparable.”
The analysts tried to approximate how the two compare, saying Uber’s “ridesharing take rate,” defined as revenue over gross bookings, was 22% in 2018 compared with Lyft’s 26%. But they noted that Uber includes tolls and surcharges in gross bookings, unlike Lyft, and Uber’s numbers were global, which suggests a larger spread of its range.
“We believe there could be continued pressure on Lyft shares while investors wait for Uber’s roadshow and dig further into the full financial metrics,” the Wedbush analysts wrote. “In our opinion, the battle for market share will be balanced going forward. We think there’s plenty of work to do and time to go until investors start to feel like they are missing out on the ‘next Amazon’ although we believe Lyft remains in a strong position to capitalize on this fertile market opportunity.”
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