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(Bloomberg) — Lyft Inc. reported better-than-expected gross bookings in the first quarter, drawing a sharp contrast with the disappointing results issued by its much-larger ride-hailing rival Uber Technologies Inc. a day earlier.
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Gross bookings for the first quarter were $4.16 billion, Lyft said in a statement Thursday, slightly beating the average of analysts’ estimates compiled by Bloomberg. Rides increased 16% from a year earlier to 218.4 million, also ahead of expectations.
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Lyft expects gross bookings for the current period to be between $4.41 billion and $4.57 billion, with the midpoint landing just above estimates.
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The company announced an accelerated and expanded share-buyback program, in line with a proposal made by activist investor Engine Capital. The board authorized an increase to its repurchase to $750 million, up from $500 million, Lyft said. It plans to use $500 million of the authorization within the next 12 months.
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Lyft’s results stand in contrast to Uber’s earnings report on Wednesday. Uber posted slower-than-expected gross bookings growth of 14% in the first quarter, citing a decline in US inbound travel. That’s despite its second-quarter earnings and bookings forecasts exceeding expectations.
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Lyft’s shares gained 7.7% to nearly $14 in after-market trading on Thursday.
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Lyft attributed its results to accelerated growth in active riders, which reached 24.2 million in the first quarter. The company pointed to its expansion into less densely populated markets such as Indianapolis, where it saw a 37% gain in rides. It also began offering higher-margin premium rides in more US regions.
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Competition is set to heat up in sparser markets, where there’s a higher dependency on cars due to limited public transportation. Uber said Wednesday that it plans to expand its presence in more of those cities.
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The two rideshare companies are expected to spar on more fronts as Lyft has begun a pilot to offer taxi-hailing on its app in the US. It will soon follow suit with nine more countries in Europe, following its recent announcement that it’s buying European taxi app Freenow. Uber already has taxi offerings in more than 500 cities globally.
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Lyft said it’s also continuing to expand in Canada, where rides are up 50%, adding that it will soon onboard drivers in Quebec.
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