UBER vs. LYFT: Which Ridesharing App Had the Better Q4?

Introduction

Uber [UBER] stock is largely flat over the past year, up a somewhat lackluster 3.93% for the 12 months to February 18’s close.

Lyft [LYFT], meanwhile, is down 21.78% for the same period.

Let’s dive into the stocks’ respective outlooks.

The Ridesharing Race

While both Uber and Lyft have become synonymous with ridesharing, there are some notable differences between the two companies.

While Lyft operates solely in the US and Canada, Uber is active in more than 10,000 cities worldwide.

Lyft’s smaller area of influence is mirrored by its more limited service offering: ridesharing and electric scooter hire. It has partnered with DoorDash [DASH], but does not offer any native food delivery service.

Uber, on the other hand, is working towards “super app” status. It boasts a wide range of services, from native UberEats food delivery to work with public transport — such as London’s Uber Boats — and even Uber Freight, which offers solutions for carriers in need of shipping options.

How Have the Stocks Performed Recently?

In the year to date, the difference in performance is rather stark, with UBER enjoying a 35.10% jump to February 18’s close, while LYFT has risen 8.60% in the same timeframe.

Looking further back, both companies floated in 2019.

As of February 18, 2025, UBER stock is trading at a comfortable 96.03% above its first day close on May 10. 

By contrast, LYFT stock has plummeted 82.10% from its first day close on March 29.

So, why has Lyft historically underperformed, and is the trend set to continue in the future?

Comparing Fundamentals

Naturally, Uber’s more diverse product offering and much wider operating reach make it difficult to compare the two companies in terms of market cap — Lyft is operating at just 3.44% of Uber’s $170.23bn.

Interestingly, analysts have Uber marked down for a slightly higher growth rate, likely due to the firm’s commitment to expansion and diversification.

With a price to sales ratio of just 1.00, though, Lyft could well prove an attractive proposition. 

Source: Yahoo Finance

It is worth noting that Uber saw a healthy $2.73 earnings beat in Q4 2024, following more modest but still notable beats of $0.80 and $0.15 for the preceding quarters. By contrast, Lyft beat by $0.04 and $0.17, respectively, for Q2 and Q4 2024, but matched estimates precisely in Q3. 

Uber’s Q4 Results

Uber announced a 20% year-over-year increase in revenue in Q4, bringing it to $12bn. These are impressive numbers, and indeed UBER stock jumped 21.94% between the earnings release on February 5 and close on February 10.

However, the company did miss operating income estimates of $1.2bn, achieving just $770m, due in large part to legal fees for the year.

That said, the tech giant continues to control a significant global market share, and some analysts have tipped it to become a trillion-dollar company by 2030.

How Did Lyft’s Q4 Earnings Compare?

Lyft reported record results for Q4 on February 11, including record gross bookings of $4.3bn, and the firm’s first full year of GAAP profitability.

For the full year, revenue of $5.8bn represented a 31% increase from the previous year, with a net income of $22.8m comparing very favorably to 2023’s net loss of $340.3m.

CEO David Risher seemingly alluded to the rivalry with Uber, saying: “our biggest competition is inertia. 2025 will be the year we show millions of riders and drivers: You’ve now got a better rideshare choice.”

The question is whether Lyft will prove the better choice for investors.

What’s the Outlook for Ridesharing?

With positive Q4 updates from both sides, other factors come into play.

UBER Stock: The Investment Case

With TipRanks reporting that UBER holds 34 ‘buy’ and two ‘hold’ ratings from the 36 analysts who have rated the stock in the past three months, the consensus from the experts seems strong.

The Bull Case for UBER

Uber made investing headlines in early February when hedge fund manager Bill Ackman revealed a $2.3bn stake in the company. 

“We believe that Uber is one of the best-managed and highest-quality businesses in the world,” he wrote in a post on X. 

This follows an accelerated $1.4bn buyback plan announced by the company on January 6, with Uber CFO Prashanth Mahendra-Rajah emphasizing that the stock was “undervalued relative to the strength of our business”.

Uber has an established market dominance, and its commitment to both expanding its services and working alongside local authorities to capture public transit share suggests there could be further room to grow.

The company has surprised on earnings over the past three quarters, and, according to estimates on Yahoo, February 18’s close of $81.49 sits comfortably below the average analyst price target of $88.68.

The Bear Case for Uber

Uber has been plagued by legal challenges, from its own drivers — who are demanding better pay, improved working conditions and greater transparency — and established taxi services: for instance, an ongoing dispute with London’s black cab drivers could cost the firm £250m this year.

In addition to legal question marks, Uber is facing increased competition from the likes of Tesla [TSLA], which is offering driverless rides in some US cities. If this driverless technology takes off, Uber could be left out on a limb, its expensive employment model rendered obsolete.

LYFT Stock: The Investment Case

The analyst outlook for LYFT is less clear-cut. With just 7 ‘buy’ ratings and 23 ‘hold’, is Lyft an underappreciated opportunity, or a stock to avoid?

The Bull Case for LYFT

Lyft’s hyperfocus on one market — namely, ridesharing in North America — enables it to concentrate on growth, without distractions from elsewhere. This streamlined approach could be considered a unique value proposition versus Uber’s more diverse portfolio.

With an average price target of $17.46 on Yahoo, LYFT’s February 18 close of $14.01 suggests the stock could offer a decent amount of upside in the coming months, if analyst predictions prove accurate.

The Bear Case for LYFT

Of course, many of the challenges highlighted for Uber apply here too. Ongoing concerns regarding driver welfare and the growth of autonomous vehicles should not be overlooked by investors considering Lyft stock.

That said, while Uber is strategically placing itself to partner with autonomous vehicle providers in the future, Lyft has already delivered 100,000 driverless rides. The continued success of Lyft’s autonomous arm could prove a vital opportunity for the smaller firm to capture more market share.

Conclusion

Uber and Lyft may operate in the same space, but they are ultimately very different investment opportunities. Traders should consider their goals, risk tolerances and the wider industry outlook before deciding to invest in either.