Lyft has unveiled plans for their food delivery service

As the ride-hailing companies still struggling during this pandemic period, the San Francisco-based company LYFT (NASDAQ: LYFT) announced it will soon be entering the food-delivery business. The $LYFT stock surged more than 6% on Tuesday after the news.

Lyft’s president John Zimmer said the company plans to offer a new format delivery service for restaurants without launching a full-fledged consumer-facing platform for food delivery.

“This delivery model plays to our strengths, including making full use of our existing technology, it is very early days, but we look forward to updating you on our progress as we continue exploring this path.” Lyft’s president John Zimmer said.

On the other hand, the ride-hailing giant posted a loss of $459.5 million in its third-quarter on Tuesday while revenue came better-than-expected. The company reported US$499.7 million in sales for the quarter and slightly beat the Wall Street estimates but still 48 per cent lower than the same period in 2019. The company said the active riders had risen to 12.5 million from 8.7 million in the previous quarter but dipped 44% from the year before.

  • Earnings per share: -$1.46 vs. -$0.91 expected
  • Revenue: $499.7 million vs. $486.4 billion expected

“We believe the vaccine will accelerate our recovery, as the economy recovers and people get out again, it directly correlates” to Lyft’s performance,” Zimmer said.

Very interesting mate. Have. You invested

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I do mostly in FX and metals. Stocks I trade rarely but I make an analysis report.

So you suggest to invest in Lyft?

A great idea for business expansion, it is very relevant now.

Now, during the pandemic, various types of delivery are very relevant, especially food delivery. Delivery companies make good money from this situation. We are lucky that such deliveries exist. If I had any spare money, I would be happy to invest in this company. At this time, a great niche for business is catering. In particular, the success of ford trucks, which are located on every corner. I sometimes buy a meal at food truck nyc and noticed that they are very popular and there are always a lot of people waiting in line.