(Bloomberg) – Lyft Inc. reported better-than-expected total bookings in the first quarter, in contrast to disappointing results released by its massive ride rival Uber Technologies Inc. every day.
In a statement Thursday, Lyft said the total bookings for the first quarter were $4.16 billion, slightly beating the average of analyst estimates compiled by Bloomberg. Starting a year ago, cycling has grown 16% to 218.4 million, also ahead of expectations.
Lyft expects total bookings for the current period to be between $4.41 billion and $4.57 billion, with the midpoint dropping above the estimated range.
The company announced an accelerated and expanded stock buying plan, consistent with proposals from activist investor Engine Capital. Left said the board authorized to increase its buyback to $750 million, up from $500 million. It plans to use a $500 million mandate over the next 12 months.
Lyft’s results were contrary to Uber’s earnings report on Wednesday. Uber’s total booking growth rate in the first quarter was slower, citing a slower rate of growth in total bookings, citing a decline in inbound travel in the United States. Although its revenue and booking forecasts for the second quarter exceeded expectations.
Lyft’s shares rose 7.7% to nearly $14 in after-sales trading on Thursday.
Lyft attributes its results to accelerated growth in active riders, with growth rate of 24.2 million in the first quarter. The company noted that it expanded to densely populated markets such as Indianapolis, where rides grew by 37%. It also begins to offer higher profit premium rides in more U.S. regions.
Competition will intensify in sparse markets, as public transportation is limited and the dependence on cars is higher. Uber said Wednesday it plans to expand its presence in more cities.
As Lyft has started pilots offering taxi pilots on the U.S. app, the two ride-hailing companies are expected to steal more. After recently announced that it is buying the European taxi app Freenow, it will soon follow suit with nine European countries. Uber already offers taxis in more than 500 cities around the world.
Lyft said it continues to expand in Canada, where rides rose by 50%, adding that it will soon board the driver in Quebec.
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