LYFT USLyft, Inc.BATS:LYFTA3MInvestments🌎Q3 Key Results: Growth is strong, momentum is growing Lyft's third-quarter report confirms that its comeback strategy is working. Record Performance: The company achieved historic highs in active riders (28.7 million, 1.2 million above expectations) and bookings ($4.78 billion, +16% YoY). Stable Growth: Rides increased 15% YoY—the tenth consecutive quarter of double-digit growth. Healthy Finances: Operating cash flow generation remains strong ($1.08 billion over the past 12 months). The growth of Lyft's active rider base is a key indicator. It signals demand for Lyft's services and lays the foundation for future monetization, even if current promotions are temporarily holding back revenue growth. Future Growth Forecast and Drivers Management provides encouraging guidance, predicting accelerated growth through 2025 and beyond. Bookings and Margins: Bookings are expected to grow 17-20% year-over-year, with Adjusted EBITDA margins of 2.7-3.0%. Key Growth Drivers: California Insurance Reform (SB 371): When enacted in 2026, it will significantly reduce insurance costs (currently down to $6 per trip), making the service more affordable and increasing profitability. Tank Market Assessor (TAM): CEO David Risher estimates the total U.S. market potential at 161 billion trips per year, while Lyft and Uber currently account for only about 2.5 billion. This leaves enormous room for growth. Expansion and Partnerships: Acquisitions (FREENOW, TBR) doubled Lyft's addressable market, opening access to the premium segment and the European taxi market. Strategic Focus: Hybrid Network and Partnerships Rather than fearing autonomous vehicles (AVs), Lyft sees them as an opportunity and is building a hybrid model. Hybrid Network: The company believes that demand cannot be met by AVs alone in the foreseeable future. The combination of driver-partners and autonomous vehicles will create synergies. Key Partnerships: Waymo: Deep technical integration to maximize fleet utilization. This strategic partnership has plans to scale beyond Nashville. Flexdrive: A subsidiary that ensures 90% fleet availability (charging, cleaning, repairs), which is critical for AV deployment. Niche Markets: Success in college campuses and medical transportation accounted for 70% of Q3 growth. Valuation: Significantly undervalued given growth. The wide range of analyst estimates reflects uncertainty about the impact of AV, but even conservative estimates point to upside potential. Multiples: With revenue growth projected at 15%+, Lyft trades at impressively low forward multiples: 2027 P/E: ~12 (extremely low for a company with double-digit growth). P/FCF: ~7-8 (based on a conservative free cash flow estimate of $1.2-1.4 billion). Risk Adjustments: Including large stock option compensation (SBC) and insurance reserves will certainly lower these numbers. However, even after accounting for these, the current price appears conservative. Risks: Managed amid transformation The main risk is self-driving cars: Theoretically, giants like Google and Tesla could start a price war that would be unfavorable for Lyft. However, the global scaling of AVs will face regulatory and cultural barriers, giving Lyft time to maneuver.