How Do Uber And Lyft Compare In Terms Of Key Revenue And Valuation Metrics?

by Trefis Team
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Ride sharing behemoth Uber recent filed its Form S-1 as it looks to go public, following rival Lyft which listed in March. In this analysis, we compare Uber and Lyft’s key operating and financial metrics (for 2018). We note that the metrics for Uber includes its Uber Eats delivery business (about 13% of net revenues in 2018), while Lyft’s metrics relate solely to its ride sharing operations.

We have created an interactive dashboard analysis on How Do Uber And Lyft Compare In Terms Of Key Metrics? which outlines the metrics and comparison in detail. You can also see more data for Technology Companies here.

How Did Uber And Lyft Stack Up In Terms Of Total Trips Delivered In 2018?

  • Uber delivered over 5 billion trips vs. 620 million for Lyft in 2018, driven by its larger customer base and operations spanning  63 countries. In comparison, Lyft only operates in the United States and Canada.
  • Uber’s customers also appear to use the service more frequently, taking over 60 trips per year in 2018 versus just about 38 for Lyft.
  • However, Lyft’s total trips delivered grew at an average rate of over 90% over the last two years, ahead of the 70% growth posted by Uber.

How Did Uber And Lyft Stack Up In Terms Of Revenue Per Ride, Gross Revenues In 2018?

  • Gross revenues represent the total dollar value, including any applicable taxes, tolls, and other charges paid by riders using Uber.
  • Uber’s gross revenues are higher than Lyft’s, due to the larger number of trips delivered.
  • However, Lyft’s revenue per trip is about 35% higher than Uber’s, as it only operates in the higher-value U.S and Canadian market.
  • Moreover, Uber’s revenue per ride has declined compared to 2016, while Lyft’s has grown.

How Do Uber And Lyft’s Net Revenues Compare, And What Are Their Respective Take Rates?

  • Net revenue is the cut that the company takes from gross revenues, after accounting for driver payments and incentives, promotions and other items.
  • While Uber’s net revenues are higher in dollar terms, its take rate is lower than Lyft’s (21% vs 27%).
  • This is likely due to Uber’s expansion into international markets, which has resulted in higher discounts and incentives to drivers.

How Do Total Reported Revenues Of Uber and Lyft Compare?

Uber has some other businesses including Uber Freight and New Mobility, which it reports under its Other Bets revenues. We add this to its net ride sharing revenues to arrive at total revenue.

How Are Uber And Lyft Valued Based On 2018 Revenues?

While Uber has not priced its IPO, there is speculation that the company could be targeting a $100 billion valuation, implying a revenue multiple of 9x based on 2018 revenues. Lyft’s current $17 billion valuation translates into an 8x revenue multiple. That said, it’s possible that Uber could go with more conservative pricing, considering that Lyft’s stock is down by close to 25% since its IPO.

How Do Uber And Lyft’s Valuations Compare With Other Tech Giants When They Had Similar Revenues?

 
  • Uber’s revenue multiple stands at 9x, compared to about 8x for Lyft.
  • In comparison, Google had a revenue multiple of 13x in 2016, when its revenues stood at about $11 billion – roughly in line with Uber’s 2018 revenue.
  • Facebook had a revenue multiple of 16.5x in 2014 when it had revenues in the ballpark of $13 billion.
  • However, both Facebook and Google were profitable at these revenue levels, compared to Uber which remains loss-making, justifying their comparatively higher multiples.

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