Lyft rides increased 26% in May 2020

Lyft rides in May 2020 increased compared to April 2020. Yahoo Finance’s Heidi Chung breaks down the details.

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BRIAN SOZZI: Let's hit a Yahoo Finance Trending Ticker here. That'd be shares of Lyft. The stock is up more than 5% today after it announces rides in May were much higher than the month of April. Yahoo Finance's Heidi Chung has the details. Heidi?

HEIDI CHUNG: Hey, Brian. Yeah, actually we're seeing Lyft shares soaring 9% right now. It's really revving higher here after the company provided that business update yesterday. It looks like the state reopenings are helping the company. The ride-sharing platform is seeing a big boost in rides, reporting that on its platform in May, right shares grew 26% compared to April.

And while that's a lot of good news, that figure is still down 70% from the same period last year. Rides have increased week-over-week for seven consecutive weeks since the week ending April 12. And in the week ending May 31, rides increased 5.5% versus the prior week, but were down roughly 66% from last year. Lyft noting that ridership improvement was most notable in areas and states where shelter-in-place orders have eased a bit. Rides increased 73% in Austin, Texas, 64% in Nashville, Tennessee, 59% in Miami, and 42% in New York City.

And the weather is also getting warmer, which means a lot more people are outdoors. Lyft noting that bike usage also surged on the platform, increasing 118% in May. And that is compared to the same period in April.

Also, given that the company's performance in May was rather strong, Lyft says that it does not expect adjusted EBITDA loss to exceed $325 million if the average daily ride volume in June stays steady from May. Lyft also expects to release its second quarter earnings in early August. So we'll get a clearer picture on how the second quarter pans out for the company. Brian?

BRIAN SOZZI: All right, thanks so much, Heidi.