Popular ridesharing services provider Lyft , Inc. (NASDAQ:LYFT) has been trying to recover from the collapse in demand for ride-hailing apps amid the COVID-19 pandemic. However, because the decline in overall ridership numbers remains a concern amid increasing competition from UBER, the question is will LYFT be able to turn a profit anytime soon? Read more to find out.Originally named Zimride, Inc., the on-demand ridesharing company Lyft, Inc. (LYFT) operates multimodal transportation networks to provide riders with personalized access to various transportation options. Although shares of LYFT have rallied 141.9% over the past six months on an uptick in demand for ridesharing services thanks to progress with mass COVID-19 vaccinations nationwide. The stock has lost 8.7% over the past month.
The resurgence of coronavirus infections could negatively impact the company’s sales in the near term, however. Also, increasing competition from Uber, Inc. (NYSE:UBER), which spends substantial amounts on marketing and other incentives to grow its customer base, could be a big challenge in LYFT’s comeback.
Here is what we think could influence LYFT’s performance in the near term: