Lyft Inc. slumped 26% after it gave a forecast for the current quarter that missed analysts’ estimates as the company plans to ramp up spending on incentives for drivers to address a persistent shortage in supply.
The San Francisco-based company expects revenue of as much as $1 billion in the second quarter, and sees earnings before interest, tax, depreciation and amortization of $10 million to $20 million in the period. Both were lower than analysts expected.
The disappointing outlook shows how Lyft is struggling to claw its way out of the pandemic. Even as it and rival Uber Technologies Inc. have found resurgent customer demand, they have struggled to attract drivers and the imbalance has led to longer wait times and high fares for riders. The companies have doled out bonuses and other incentives to lure drivers back.
