{"id":106548,"date":"2021-02-09T04:02:39","date_gmt":"2021-02-09T04:02:39","guid":{"rendered":"https:\/\/fin2me.com\/?p=106548"},"modified":"2021-02-09T04:02:39","modified_gmt":"2021-02-09T04:02:39","slug":"wall-street-eager-to-see-when-uber-lyft-expect-return-to-normalcy-following-covid-19","status":"publish","type":"post","link":"https:\/\/fin2me.com\/economy\/wall-street-eager-to-see-when-uber-lyft-expect-return-to-normalcy-following-covid-19\/","title":{"rendered":"Wall Street eager to see when Uber, Lyft expect return to normalcy following COVID-19"},"content":{"rendered":"
Fox Business Flash top headlines for February 8<\/h2>\n
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With the pandemic still suppressing ridesharing demand, Wall Street is keen to know how soon Uber Technologies Inc and Lyft Inc expect a rebound and how they plan to keep costs under control until then.<\/p>\n
Investors are also hoping for more insight on Uber’s successful food delivery operations and Lyft’s efforts to set up a delivery business when the companies report fourth-quarter results this week.<\/p>\n
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Analysts generally do not expect ride-hail demand to rebound before the second half of 2021, when more people have been vaccinated and offices and businesses have reopened, which suggests a somewhat gloomy outlook for the broader consumer-based economy.<\/p>\n
The sluggish recovery also complicates Uber and Lyft’s efforts to become profitable on an adjusted basis by the end of this year.<\/p>\n
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With the pandemic still suppressing ridesharing demand, Wall Street is keen to know how soon Uber Technologies Inc and Lyft Inc expect a rebound and how they plan to keep costs under control until then. (AP Photo\/Richard Vogel, File)<\/span><\/p>\n
Lyft, scheduled to report results on Tuesday afternoon, already disclosed that rising COVID-19 infections have resulted in 47% and 50% fewer rides in October and November, respectively.<\/p>\n
Analysts expect a similar trend for Uber, which reports results after market close on Wednesday. As a global player, Uber is also impacted by renewed lockdown measures imposed across its European markets.<\/p>\n
“Cost-cutting is perhaps the main factor which investors watch these days when they decide to trade ride-hailing stocks,” Investing.com analyst Haris Anwar said in a note.<\/p>\n
Bernstein analysts cautioned investors to ignore the short-term volatility in the pace of recovery.<\/p>\n
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Unlike Lyft, Uber has been able offset its ride-hail losses with a surge in food-delivery orders at its Uber Eats business, where revenue has doubled during the pandemic.<\/p>\n
Uber has expanded its footprint in the competitive space and acquired smaller food-delivery rival Postmates and alcoholic beverage delivery service Drizly.<\/p>\n
The company has also launched grocery, package and prescription deliveries in some North American cities.<\/p>\n
Lyft last quarter announced it was working to offer a delivery service for restaurants without launching a full-fledged consumer-facing platform for food delivery.<\/p>\n
Asked about details during a December investor conference, Lyft President John Zimmer said the company was working on a white-label or non-Lyft-branded platform to allow deliveries between different businesses for groceries, food and packages.<\/p>\n
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Lyft has not provided further details and Zimmer in December said the company was still in the very early stages of the process.<\/p>\n
Analysts on average expect Uber to post $3.58 billion in fourth-quarter revenue and a $949 million net loss, according to Refinitiv data.<\/p>\n
Lyft is expected to post $562 million in quarterly revenue at a net loss of $226 million, Refinitiv data showed.<\/p>\n
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