Shares of Lyft Inc. (NASDAQ:LYFT) gained more than 8% in price after the company released solid third-quarter results last month. However, given the rising concerns over the new COVID-19 variant and increasing competition from Uber Technologies (NYSE:UBER), is it worth adding LYFT to one’s portfolio now? Let's find out.San Francisco-based Lyft Inc. (LYFT) is an on-demand ride-sharing company that manages multimodal transportation networks to give riders individualized access to various transportation alternatives. After delivering solid third-quarter results last month, the company's shares jumped more than 8% in price.
LYFT's revenues grew 73% year-over-year to $864.4 million in its fiscal third quarter, ended September 30, 2021. The company witnessed an 11% rise in active passengers during the quarter, although its ridership remained 35% lower than pre-pandemic levels. Its adjusted net income rose 106.3% from the year-ago value to $17.8 million. Furthermore, the company's EPS surpassed the consensus estimate by 266.7%.
However, closing yesterday's trading session at $41.15, LYFT's shares have retreated 27.9% in price over the past nine months and 16.5% over the past three months. In addition, the recently discovered COVID-19 omicron variant might have an acute, detrimental impact on the company's sales. Also, increased competition from Uber Technologies, Inc. (UBER), which spends substantial amounts on marketing and other incentives to build its client base, could pose a major hurdle to LYFT's rebound to pre-pandemic levels.