Lyft drops 30% in the Mexican market due to bad report


Mobility services provider Uber Technologies said on Wednesday it had no need to increase incentives to attract more drivers and forecast a strong second quarter, a day after rival Lyft said it would need to spend more resources than expected. in the coming months.

Shares of Lyft listed on the New York Stock Exchange fell 29.91% on Wednesday, after reporting that its operating profit missed expectations on rising driver wages, dragging Uber shares in its wake, which fell 4.65 percent.

The shares of both mobility platforms are listed within the International Quotation System (SIC), a platform of the Mexican Stock Exchange, where their performance was also affected on Wednesday. Those of Lyft fell 30.35% and those of Uber 5.68 percent.

“Uber has a more diversified revenue base, thanks to Uber Eats, but the issues with Lyft could affect Uber as well, especially on the cost side,” said Russ Mould, chief investment officer at AJ Bell.

On Tuesday, Lyft said it would have to spend more to balance supply and demand in coming quarters, hurting its already meager operating profit.

Its shares fell nearly 30%, wiping out more than $3.2 billion in market value.

On Wednesday, Uber also reported a drop in monthly active riders in the first three months of the year from the previous quarter, a common trend in the industry during the colder winter months, but was keen to differentiate itself from its competitor. smaller. Uber’s first-quarter loss rose to $5.9 billion

“We heard on Tuesday that one of our competitors in the US is having challenges,” Uber CEO Dara Khosrowshahi told analysts during a post-earnings call, referring to Lyft. (With information from agencies)

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