Lyft Adds ‘Higher-End Ride’ as Q3 Revenue Rises

Ride-hailing platform Lyft has introduced a new “higher-end ride,” the company announced, as it cited “continued momentum” in travel in announcing its third-quarter results. 

The new product, called Extra Comfort, is “an affordable sort of higher-end ride,” Lyft CEO David Risher said during a Wednesday earnings call. “The cars are newer, the drivers are more experienced, the leg room is a little bit longer, you can choose a quiet ride.” It’s priced at about $1 “above the normal experience,” he added. 

Lyft also recently expanded the availability of its Women-Plus Connect product, which started in September as a pilot program in five cities and on Nov. 2 expanded to 50 more markets, according to the company. The option allows women and non-binary drivers in select cities to increase their chances of matching with more women and non-binary riders. 

In those early-access cities, more than half of eligible drivers and about 200,000 eligible riders had opted into the feature, and drivers using Women-Plus Connect are keeping it turned on 99 percent of the time, according to Lyft.

Lyft also is extending through Jan. 7 its on-time pick-up guarantee in certain markets for scheduled rides to the airport, according to the company, and will offer credits or Lyft Cash if the driver is more than 10 minutes late.

Lyft Q3 Metrics

Lyft on Wednesday reported third-quarter gross bookings of nearly $3.6 billion, up 15 percent year over year, and up from the $3.4 billion reported in Q2 2023. Revenue was nearly $1.2 billion, up 10 percent compared with a year prior and up 13.4 percent versus last quarter. Its net loss was $12.1 million, compared with a $422.2 million loss reported a year prior and a $114.3 million loss reported last quarter.

The company reported 22.4 million active riders in the third quarter, up 10 percent versus Q3 2022 and up from the 21.5 million reported for the second quarter. Lyft also cited “continued momentum” in travel, with airport trips growing near 15 percent year over year. 

Fourth-quarter guidance included gross bookings of $3.6 billion to $3.7 billion, and revenue growth in the mid-single-digit percentages, quarter-over-quarter.

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