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Lyft Craters, Dragging Down Uber as Driver Supply Stirs Profit Concern

  • Lyft tumbles as much as 35%, the most ever, on outlook
  • The average cost of a rideshare trip in the U.S. was up 45%
Bloomberg business news
Lyft Shares Plunge as Second-Quarter Outlook Disappoints
Updated on

More people may be once again hailing a ride from Uber Technologies Inc. and Lyft Inc., but investors remain wary that efforts to woo back more drivers could derail profitability goals. 

Lyft plunged as much as 35%, the most ever, dragging Uber down more than 12% after both companies reported quarterly results that pointed to strong demand for rides, but failed to reassure Wall Street that a driver shortage that’s cost the companies hundreds of millions of dollars in bonuses was abating.