The company reported second-quarter earnings that blew past Wall Street expectations, and the fare hikes will likely help that continue.
Lyft fares are getting more expensive, the company admitted Thursday, and the price increases are likely going to hurt your wallet when you most need a ride.
"Our guidance incorporates modest price adjustments that went live towards the end of June," Brian Roberts, Lyft's chief financial officer, told investors on a conference call following the company's second quarter earnings that handily topped expectations.
Read more: A 'warrior's warrior': Why insiders say the first-time CFO running Lyft's $20 billion IPO is the perfect fit
"More specifically, we began to adjust prices on select routes and in select cities based on costs and demand elasticities."
Lyft is likely not going to raise prices on routes where people might be dissuaded to take another form of transportation.
(Reuters) — Lyft on Wednesday said a price war with rival Uber was easing, boosting shares of both companies and allowing Lyft to raise its outlook for the year and forecast a faster path to profitability.
That sent Lyft shares up 5% and shares of Uber up 3.8% in after-hour trade.
“We believe these price adjustments are an industry trend,” Chief Financial Officer Brian Roberts said on a call with analysts.
He said 2018 was likely the peak of losses for Lyft, an improvement from the company’s previous target of reporting its biggest loss this year.
Lyft shares temporarily turned negative after it announced plans to bring forward its lock-up period – the time after a public offering in which large shareholders are prohibited from selling shares – to Aug. 19 from Sept. 24.
Lyft estimated that about 257.6 million shares could become eligible for sale when the trading restrictions ended.
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“Never judge a book by its cover”, they say. But we’re sure that ‘they’ would have never come to the Wall Street. In the world of business, the looks of a book are just as important as the innards. A company is known by the ‘brand’ it forms, the logo it lugs, and the values it hones.
