Uber Speeds Past Lyft In Race for Profitability

Key Takeaways:

• Uber’s 4Q23 EPS and revenue exceeded street estimates as the company saw double-digit YoY growth across its various operational metrics, and reported profitability for the first time in its history. Per Sensor Tower data, Uber app MAUs increased 11% YoY in 4Q23, a slight acceleration vs 4Q22 (+9% YoY), while Lyft MAUs increased 5% YoY in 4Q23, also registering an acceleration from 4Q22 growth (+4% YoY)

• In the US, Uber MAUs increased 7% YoY in 4Q23 vs +3% for Lyft per ST data. Both rideshare apps exhibited similar growth trends throughout 2023, with a marked deceleration in US MAU growth as pandemic-induced demand waned. From 1Q23-4Q23, Uber US MAUs increased an average of 8% YoY, per quarter, vs 22% from 1Q22-4Q22, while Lyft US MAUs in 1Q23-4Q23 increased an average of 5% YoY, per quarter, vs 17% from 1Q22-4Q22, per ST estimates

  • ST Audience Insights data suggests that Uber has been more successful at cultivating loyalty amongst its US user base than Lyft as nearly two-thirds (66%) of US Lyft users in 4Q23 used the Uber app, compared to only 38% of US Uber users who used the Lyft app through the same period. This suggests that although US consumers likely utilize both platforms, those who use Uber are likely relying more on the app to book trips than they are on Lyft

• ST data suggests US Lyft Driver app users, on average, opened the app more frequently in 4Q23 and were far more loyal than users of the Uber Driver app, indicating that Lyft may have more effectively kept drivers engaged during the busy winter holiday season. Nearly 31% of US Lyft Driver app users opened the app +15 days/month in 4Q23, up from 17% in 4Q22. Comparatively, US Uber Driver app frequency was far lower during the holiday season as the percentage of users opening the app 15 or more days/month resided around 23% in 4Q23, up slightly from 20% in 4Q22

• Although still in its early stages, Uber’s budding advertising network has experienced impressive growth as it attracted key advertisers in the CPG and Media & Entertainment spaces in 2023. Per ST data, CPG and Media & Entertainment advertiser impressions on Uber’s retail media network soared 1.3x and 4.0x QoQ in 4Q23, respectively, as the platform became a more attractive destination for brands in these industries to showcase their products

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