Investor's Perspective: What's the Difference Between Uber and Lyft?

Investor’s Perspective: What’s the Difference Between Uber and Lyft?

Plus a look at Starbucks, Match Group, and Rover Group.

In this Motley Fool Money podcast, Motley Fool analyst Maria Gallagher discusses: The prospects for Uber reaching profitability by the end of 2023.

How challenges in China contributed to Starbucks ( SBUX -1.95%) suspending its guidance for the rest of its fiscal year.

Starbucks’ 12% same-store sales growth in the U.S.

Also, Motley Fool analysts Emily Flippen and Asit Sharma discuss the business of pet ownership and the prospects for small-cap Rover Group ( ROVR -7.27%).

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video.

Starbucks Heats Up, Lyft Stalls

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Playback RateChapters Chapters Descriptions descriptions off, selected Subtitles subtitles settings, opens subtitles settings dialog subtitles off, selected en-US Captions Audio TrackFullscreenThis is a modal window. This video is either unavailable or not supported in this browser Error Code: MEDIA_ERR_SRC_NOT_SUPPORTEDTechnical details :The media could not be loaded, either because the server or network failed or because the format is not supported. Session ID: 2022-05-10:3155f38d713f3b7a76a768d Player Element ID: vjs_video_3OKClose Modal DialogBeginning of dialog window. Escape will cancel and close the window.TextColorWhiteTransparencyOpaqueBackgroundColorBlackTransparencyOpaqueWindowColorBlackTransparencyTransparentFont Size100%Text Edge StyleNoneFont FamilyProportional Sans-SerifReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Should you invest $1,000 in Uber Technologies, Inc. right now? Before you consider Uber Technologies, Inc., you’ll want to hear this.Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now… and Uber Technologies, Inc. wasn’t one of them.The online investing service they’ve run for two decades, Motley Fool Stock Advisor , has beaten the stock market by 3X.* And right now, they think there are 10 stocks that are better buys. *Stock Advisor returns as of April 7, 2022 This video aired on May 4, 2022. Chris Hill: Today on Motley Fool Money : ridesharing; the business of pets; and coffee — wonderful, wonderful coffee.I’m Chris Hill. Joining me today from the financial capital of the United States of America, it’s Motley Fool Senior Analyst Maria Gallagher. Good to see you. Maria Gallagher: Nice to see you too. Chris Hill: We’ve got the latest on Starbucks and Match Group. We’re going to get to those, but we’re going to start with the ridesharing businesses: Uber and Lyft, both out with first-quarter reports.There is a tendency to lump these two together, not just because they’re in the same line of work and because they typically report earnings at about the same time, but also because for a long time, their businesses sort of tracked one another. I feel like what we’re seeing today is representative of some sort of divergence between the two businesses, and not just because shares of Lyft are down dramatically more than shares of Uber. But it seems like they are in different places in terms of where they are investing.Part of why shares of Lyft are down is they are talking about how, “Hey, look, we’re going to be spending more money. We need to spend more on driver incentives.” It’s not that Uber is suddenly magically a profitable business. But it seems like… I don’t know, are they more mature as a business? What do you see when you look at these two? Maria Gallagher: Yeah, I think it is really important to understand that they are really used interchangeably, colloquially. In terms of what ride are you getting, it’s either going to be Lyft or Uber probably, and so understanding the difference in scale is really important.If we’re looking at Uber — last quarter, their gross bookings were $26.4 billion, which was up 35%. Their revenue was up 136% to $6.9 billion. Trips grew 18%. There are 19 million trips on Uber a day, on average, which is just so many. And then, if you look at that in comparison to Lyft, their revenue was up 44% to $875 million and they have about 17.8 million active riders.And Lyft spoke more about increasing spending and investments in drivers and marketing, and when you’re thinking about comparing the two rates, we can think about that diversification in Uber. We had delivery gross […]

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