https://wccftech.com/lyft-shares-surge-will-be-profitable-by-2021-says-guggenheim/

The Pepsi (NASDAQ:PEP) of ride-hailing services, Lyft (NASDAQ:LYFT) will be profitable by 2021 claims Guggenheim. After beating its archrival Uber (NYSE:UBER) to IPO in March (Uber opened to the public for subscription in May), investors have been worried about its long term financial prospects, particularly eventual profitability. Guggenheim earlier expected Lyft to turn profitable in 2023, further lending credence to investor worry over its long-run viability. However, in a turn of fate, Guggenheim now expects Lyft to be in the green by 2021 – less than two years out. After the news came out, Lyft stock jumped and finished the day up over 4%.

The upgrade was prompted by a surprising shift in the company’s pricing model over the last two quarters, quelling some fears as to the company’s ability to slowly crawl its way out to green pastures. In particular, Guggenheim sees Uber’s move into more international markets and the need for more liquidity with its food ordering arm Uber Eats as an opportunity to raise prices for Lyft. “Price increases should stimulate take-rate, bolster contribution margin and yield narrowing losses, with the potential for upside to consensus across key metrics” Fuller and Faghri (analysts at Guggenheim) are quoted as saying.