Lyft (NASDAQ:LYFT) on Wednesday forecast current-quarter gross bookings above estimates after posting upbeat quarterly sales, indicating steady demand for its ride-hailing services from people returning to workplaces.
Lyft shares, which typically see substantial price swings following its quarterly earnings, jumped about 22% in extended trading.
As more companies enforce return-to-office policies, workers are increasingly turning to app-based taxi services such as Lyft and Uber (NYSE:UBER) for their daily commute, leading to a surge in weekday demand for ride-hailing services.
To better compete with its bigger rival, Lyft introduced a Price Lock feature, allowing users to bypass surge pricing during peak commuting hours.
“We see that Price Lock riders take on average four more rides per month than they previously did before purchasing the pass,” CEO David Risher said in an emailed statement to Reuters.
While Uber last week reported better-than-expected third-quarter revenue, its forecast for the holiday quarter fell short of analyst estimates.
Despite Uber’s dominant position in the industry, Wall Street expects Lyft to maintain its strong second-place standing.
LYFT shares galloped $4.33, or 30.1%, Thursday to $18.73.