Is LYFT's Impressive Gross Bookings Growth a Sign for Further Upside?

Lyft LYFT, the San Francisco-based ridesharing company, continues to benefit from a steady rise in gross bookings. This improvement is largely driven by an expanding active rider base, entry into additional markets and the success of the user-friendly Price Lock feature.

Lyft released its third-quarter 2025 results last month. During the September quarter, gross bookings climbed 16% year over year to $4.8 billion, an all-time high. This marked the company’s 18th straight quarter of double-digit annual growth in this key metric. The increase was fueled by a record 28.7 million active riders, up 18% year over year. Lyft also delivered a record third quarter of 248.8 million rides, reflecting a 15% year-over-year increase.

For the fourth quarter of 2025, Lyft anticipates year-over-year growth in rides in the mid-to-high teens, driven by industry-leading service levels, strong rider and driver growth and increased engagement. Gross bookings are anticipated to grow almost 17-20% year over year, reaching $5.01-$5.13 billion.

Lyft’s strategic shift toward less densely populated markets, such as Indianapolis, is also proving beneficial. The Price Lock feature continues to perform well. With more employees returning to the office, weekday ride-hailing demand is rising. To compete more effectively with other ride-hailing platforms, Lyft introduced Price Lock, which helps users avoid surge pricing during peak commuting hours by securing a fixed fare.

Comparison With Other Ride-Hailing Companies

Rival Uber Technologies UBER also reported strong customer activity in the third quarter of 2025. Mobility segment gross bookings increased 19% year over year on a constant-currency basis to $25.1 billion, while Delivery segment gross bookings rose 24% to $23.3 billion. Total gross bookings jumped 21% at Uber to $48.7 billion. For the December quarter, Uber expects gross bookings between $52.25 billion and $53.75 billion, signaling 17-21% constant-currency growth over fourth-quarter 2024.

Singapore-based Grab GRAB is seeing healthy momentum in On-Demand Gross Merchandise Value (“GMV”). In the third quarter of 2025, On-Demand GMV (mobility plus deliveries) at Grab climbed 24% year over year. Grab expects 2025 revenues between $3.38 billion and $3.40 billion, up from the prior view of $3.33-$3.40 billion, indicating 21-22% year-over-year growth. 

LYFT’s Stock Performance, Valuation, and Earnings Outlook

Over the past six months, LYFT’s shares have advanced 31.7%, underperforming the industry’s 73.2% surge over the same period.

6-Month Price Comparison

From a valuation perspective, Lyft trades at a 12-month forward price-to-sales (P/S) ratio of 1.1X, making it inexpensive relative to industrial levels.

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Additionally, the Zacks Consensus Estimate for LYFT’s 2025 and 2026 earnings has moved higher over the past 60 days.

Zacks Rank

Lyft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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