I see a lot of discussion about UBER, but what do you think about LYFT? it seems significantly undervalued to me. With the acquisition of TBR, Freenow and Gett’s UK it has built a durable business outside the US. I’m from Milan, and I think Freenow, backed by Lyft, will easily take a lot of market share from Uber here.
Its margins are lower compared to UBER, but they are expanding and could potentially reach 8%+ by 2030. It is trading as if it is going bankrupt, but it is actually a free cash flow machine. At this price, I believe it will eventually be acquired. They also executed a $300 million share buyback program in Q1 '26. I don’t understand why their valuation is so compressed.
Furthermore, ridesharing cannot become a monopoly due to antitrust pressures. Finally, they are also expanding into AV through partnerships with Apollo Go, May Mobility, and Waymo. The current market cap implies that investors could receive their entire principal back in cash in less than 5y