Key insights
- The article suggests Lyft is significantly undervalued, highlighting its international expansion (TBR, Freenow, Gett UK) and potential margin expansion to 8%+ by 2030. Despite lower margins than Uber, Lyft is described as a free cash flow generator trading at distressed levels, with potential for acquisition. A $300M buyback in Q1 '26 and AV partnerships are noted. The author believes antitrust pressures prevent ridesharing monopolies, and current valuation implies rapid principal recovery. This positive outlook on Lyft'
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