stockrowWhat it does
Lyft operates a mobility platform that connects people seeking transportation with drivers and other services. Its app lets riders request on-demand trips, while drivers use the marketplace to find passengers. Lyft also offers taxis, private-hire vehicles, chauffeured services, car sharing, and shared bikes and scooters in selected markets.
The company serves individual riders as well as organizations that arrange and pay for ground transportation. Its Lyft Business offerings let organizations manage transportation programs, while its Concierge service can arrange rides for other people. For drivers who lack a qualifying vehicle, the Express Drive program provides access to rentals through Lyft’s Flexdrive subsidiary and rental partners.
Riders can choose among services with different prices, vehicle types and pickup options. Wait & Save offers a lower price to riders willing to wait, while other choices include larger vehicles and premium rides. Shared bikes and scooters provide another option for shorter trips and connections to public transit.
Lyft was founded in 2012 and adopted its current corporate name in 2013. It is headquartered in San Francisco, and David Risher is its chief executive. The company had 3,913 full-time employees worldwide at December 31, 2025.
How it makes money
Substantially all of Lyft’s revenue comes from its ridesharing marketplace. Lyft collects service fees and commissions from drivers for using the platform. In certain markets where Lyft controls the transportation service provided, it recognizes the gross amounts collected from riders rather than only a platform fee.
The company has other sources of revenue alongside the marketplace. Organizations pay Concierge platform fees, and riders can pay subscription fees for access to transportation options. Lyft also earns revenue from advertising, licensing and data access agreements, shared-bike and scooter rentals, and sales of bikes and bike-station hardware and software. Flexdrive earns rental revenue from vehicles provided primarily to drivers.
Riders can select options based on cost, pickup time, vehicle size and other preferences. Price Lock is a subscription that caps the price of a rider’s regular and scheduled rides on a specified route during a chosen pickup time. Lyft also uses rider incentives, and some driver incentives are recorded as a reduction to revenue.
Gross Bookings measure the dollar value of transactions for rides and other offerings, including applicable taxes, tolls and fees but excluding driver tips. That measure is different from Lyft’s revenue: for example, it includes transaction amounts that are not necessarily retained by Lyft. Advertising and chauffeuring also contribute to Gross Bookings without an equivalent rides component.
For 2025, net income included a $2.9 billion benefit from releasing a valuation allowance on U.S. federal and certain state deferred tax assets. International revenue was $256.0 million in FY2025.
Customers and how it sells
Lyft’s marketplace serves riders seeking transportation and drivers seeking passengers. Riders use the service for purposes including commuting and other local trips. Organizations use Lyft Business to design, manage and pay for ground transportation; Concierge can arrange a ride for a person other than the organization requesting it.
The Lyft apps are the principal channel connecting riders and drivers. The company also reaches users through referrals, partnerships, advertising, email, social media and other marketing channels. Riders can rent shared bikes and scooters through the apps in participating cities.
Lyft operates in thousands of cities across six continents. Its 2025 acquisition of Freenow added operations in nine countries and more than 180 cities, with taxis at the center of Freenow’s European offering. The TBR acquisition added a global chauffeuring business.
The United States accounted for 95.9% of FY2025 revenue, or $6.1 billion. International revenue was $256.0 million, or 4.05% of FY2025 revenue. Lyft’s United and DoorDash partnerships have continued to scale.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $6.1 billion | 95.9% | 7.34% |
| International | $256.0 million | 4.05% | 82.8% |
Suppliers and costs
Drivers supply the transportation services that form the core of Lyft’s marketplace. Lyft also relies on rental-car partners for Express Drive and has a commercial agreement with Amazon Web Services for cloud services that help host and deliver its platform. Other outside providers include payment processors and companies that support operations.
Cost of revenue includes insurance, payment processing, hosting and platform technology, and costs associated with Flexdrive vehicles. In markets where Lyft controls the transportation service, cost of revenue can also include payments to drivers or driver incentives. Insurance includes coverage generally required under transportation-network and city regulations, as well as occupational hazard coverage for drivers.
Operations and support expenses include customer support, driver background checks and onboarding, and maintenance, cleaning and repositioning of bikes and scooters. Lyft also spends on product development, advertising, rider incentives, personnel, professional services and facilities. Some driver incentives reduce reported revenue rather than appearing as an operating expense.
- Revenue$6.3B
- Cost of revenue−$3.7B
- Research and development−$451.4M
- Selling, general and administrative−$1.9B
- Other operating costs−$478.3M
- Operating income−$188.4M
Competitive position
Lyft’s main ridesharing competitor is Uber. For app-based taxi and private-hire intermediation, its main competitors are Uber and Bolt. Lyft also competes with taxi and livery companies and other transportation networks. In shared bikes and scooters, its named competitors include Lime, Bird, Fifteen, nextbike and Dott.
Companies developing autonomous vehicles and transportation services that compete or may compete with Lyft include Alphabet’s Waymo, Amazon’s Zoox, Baidu, Bolt and Tesla. Lyft has partnerships with some companies that also compete with it, including in autonomous vehicles. The company says those relationships may create actual or perceived conflicts or misaligned objectives.
Lyft uses its network and historical trip data to predict demand, match riders with drivers and provide information about where and when drivers can work. It also protects intellectual property through patents, trademarks, copyrights, trade secrets and agreements.
Our reading: The rider-and-driver network and trip data provide a meaningful potential advantage because Lyft can use them to improve matching and availability. Our reading: Intellectual property offers some protection, but competition from established and emerging transportation providers limits the protection it provides on its own.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Uber | Ridesharing, taxi and private-hire intermediation | High |
| Bolt | Taxi and private hire; autonomous transportation | High |
| Lime | Shared bikes and scooters | Medium |
| Bird | Shared bikes and scooters | Medium |
| Fifteen | Shared bikes and scooters | Medium |
| nextbike | Shared bikes and scooters | Medium |
| Dott | Shared bikes and scooters | Medium |
| Alphabet (Waymo) | Autonomous-vehicle technology and transportation services | Medium |
Growth opportunities
Lyft’s growth plans span its North American rideshare marketplace, international operations, bikes and scooters, and services for organizations. Rides and Gross Bookings increased in 2025, with Lyft attributing the latter increase to international expansion and growth in active riders and rides. Active riders increased in each quarter of 2025 compared with the corresponding quarter of 2024.
The Freenow acquisition extended Lyft beyond North America in services other than bikes and scooters. TBR added chauffeuring and ground transportation. Lyft also offers organizations tools to arrange rides and manage transportation programs, and has developed advertising, data access and licensing businesses alongside ridesharing.
Lyft’s lower-scale markets have continued to grow faster than average. The company expects rides growth in the second half of 2026 across North American rideshare, bikes and Freenow. Its United and DoorDash partnerships have continued to scale, while Lyft uses rider incentives to encourage loyalty, trial of other modes and marketplace balance.
Lyft is also working with Baidu on vehicles in London. The initial number of vehicles is relatively small, and Lyft expects the near-term financial impact to remain limited as it rolls out the technology deliberately.
- $3.2BFY2021
- $4.1BFY2022
- $4.4BFY2023
- $5.8BFY2024
- $6.3BFY2025
Structural risks
- Competition and marketplace participation. Lyft faces competition across its industries and must attract and retain qualified drivers and riders. Competitors and potential competitors may have greater resources, larger customer bases or other advantages.
- Driver classification and regulation. The classification status of drivers is a risk, as are changes in laws and the interpretation of regulations. Lyft operates under rules covering transportation networks, labor, insurance, privacy and other areas.
- Insurance and safety. Lyft faces risks concerning insurance coverage, the adequacy of insurance reserves and third-party providers’ ability to service auto-related claims. Illegal or improper user activity and the accuracy of driver background checks also present risks.
- Technology and outside providers. Security or privacy incidents, system interruptions, defects and vulnerabilities could affect Lyft or its providers. The company relies on third parties for cloud services, payment processing, vehicle rentals and other services.
- Expansion and profitability. Lyft faces uncertainty about the growth of ridesharing and other markets, its ability to maintain profitability, and the management of international expansion and new offerings. Its autonomous-vehicle partnerships and the development of that industry also present risks.
Bottom line
Our reading
Our reading: Lyft is principally a marketplace business: its revenue depends on bringing riders and drivers together, while its network and data can support matching and availability. (item1) Its international acquisitions and other transportation modes broaden the business, but U.S. revenue remains the main source. (item1; geography.united_states.share.fy2025) Our reading: Competition, driver classification, insurance and the ability to maintain profitability remain central exposures as Lyft expands. (item1; item1a)