Lyft has outperformed Uber this year, with a 40% return compared to Uber’s performance. However, Lyft faces stiff competition and needs to boost rider growth and engagement rates to maintain momentum. Autonomous vehicles present a significant long-term opportunity for Lyft, but it must stay ahead in this technology race to gain market share. Lyft’s net profit margin is currently 3%, presenting room for growth if it can improve in this area. Investors considering Lyft stock must weigh its future movements against its historical underperformance compared to the S&P 500.

Rider growth is crucial for ride-hailing services like Lyft, with 28.7 million riders compared to Uber’s 189 million. While Lyft’s year-over-year growth rate in ridership outpaces Uber’s, its total number of rides still lags significantly behind. Lyft must accelerate its growth rate to match Uber and attract more investors. Autonomous vehicles are a critical focus for Lyft’s future success, as companies that fall behind in this technology risk losing market share. Lyft’s partnership with Tensor and focus on autonomous vehicles can potentially boost its profit margins and market share.

Investors looking to buy stock in Lyft should consider the company’s current performance and future potential. The Motley Fool’s Stock Advisor team has identified 10 other stocks with significant growth potential, highlighting the importance of researching all options before investing. Lyft’s stock price may improve if the company can narrow the gap with Uber in rider growth and successfully implement autonomous vehicles.

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