Is it better to invest in Uber or Lyft?

2 views

Ubers current overvaluation makes it a short-term sell (6-month horizon), but a long-term buy (3-year horizon). Conversely, Lyfts fair valuation presents a buying opportunity for both short-term and long-term investors.

Comments 0 like

Lyft and Uber are two of the most popular ride-sharing companies in the world. Both companies have been growing rapidly in recent years, and they are both expected to continue to grow in the future. However, there are some key differences between the two companies that investors should be aware of.

Uber

  • Market capitalization: $42.4 billion
  • Revenue: $11.3 billion (2019)
  • Net income: -$8.5 billion (2019)
  • Number of active riders: 91 million
  • Number of active drivers: 3.9 million

Lyft

  • Market capitalization: $11.8 billion
  • Revenue: $3.6 billion (2019)
  • Net income: -$2.6 billion (2019)
  • Number of active riders: 22 million
  • Number of active drivers: 1.9 million

Key differences

  • Size: Uber is significantly larger than Lyft in terms of market capitalization, revenue, and number of active riders and drivers.
  • Profitability: Lyft is currently unprofitable, while Uber has been profitable in the past.
  • Competition: Uber and Lyft are the two largest ride-sharing companies in the world, but they face competition from a number of smaller companies, such as Bolt and Didi.
  • Regulation: Ride-sharing companies are facing increasing regulation from governments around the world. This regulation could impact the growth of both Uber and Lyft.

Investment potential

Uber is currently overvalued, so it is a short-term sell but a long-term buy. Lyft is fairly valued, so it is a buying opportunity for both short-term and long-term investors.

Conclusion

Uber and Lyft are both strong companies with a lot of growth potential. However, there are some key differences between the two companies that investors should be aware of. Uber is larger, more profitable, and faces more competition than Lyft. Lyft is smaller, less profitable, and faces less competition than Uber. Ultimately, the best investment decision for you will depend on your individual circumstances and investment goals.