Lyft’s 2016 Financials Show Business Gains

Lyft, the ride-hailing app that’s a distant No. 2 to Uber in the U.S., lost about $600 million last year after generating $700 million in revenue, according to data reviewed by The Information and people with knowledge of the company’s finances.

Despite the size of the loss, the 2016 results were a big improvement on the previous year when Lyft lost twice as much as the revenue it brought in, the data show. The latter half of 2016, in particular, was much stronger than the second quarter of the year, which was Lyft’s worst-ever quarter in terms of red ink, according to the data.

No subscription? You’re missing out.
Join the high-powered community of tech and business leaders who rely on The Information’s original news and in-depth reporting.
Subscribe to read the remaining 1079 words of this article.
What’s included in a subscription?
Read The Information’s original, in-depth reporting and analysis
Receive as-they-happen articles via email
Talk with award-winning reporters in subscriber-only conference calls
Join the conversation on our subscriber-only Slack channel
Attend intimate, high-powered events with leaders in tech and business
Subscribe to The Information

Lyft, which has raised $2 billion and a year ago had a $5.5 billion post-money valuation on paper, still has more than $1 billion in cash on hand. It’s planning to be profitable regardless of what self-driving cars might do for the business someday by taking out the cost of the human driver. (Autonomous vehicles potentially would introduce new costs such as needing to purchase the vehicles, actively monitor them and maintain them.) A Lyft executive told The Information last fall that a majority of rides in five years on Lyft will be from autonomous vehicles. That time frame is far from assured. 

Amir Efrati and John Danner commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Lyft expects to be profitable by 2018, based on a plan to reduce losses every quarter.