(Bloomberg) -- Lyft Inc. withdrew its profit and revenue forecasts for 2020, following rival Uber Technologies Inc. in citing evolving and unpredictable impacts from Covid-19.
The San Francisco-based ride-hailing company has seen demand fall dramatically, crushing its earlier estimates. Uber and Lyft, both of which aren't yet profitable, told investors earlier this year they would turn a profit by the end of 2020 or early 2021 before the pandemic triggered a global lockdown, freezing all non-essential travel and activities. Uber withdrew its financial guidance for 2020 last week.
When Lyft reports its first quarter results on May 6, it will detail the actions it is taking to shore up its financial position and cut costs while supporting riders and drivers, the company said in a statement Tuesday.
“The pandemic began to have a negative impact on business trends, including ride volumes, in mid-March, which has continued into April,” Lyft said in the statement.
Although Uber is seeing a spike in food deliveries through its Uber Eats unit, the company is also struggling. Its global gross bookings for rides was down around 80% in recent weeks, tech news site the Information reported Tuesday. The Information also reported that Lyft's business was down about 75%.
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