Lyft Projects Annual Gross Bookings Growth of 15% Until 2027

**Lyft Sets Ambitious Growth Targets, Eyes Expansion in Advertising**

In a bold move signaling its confidence in future growth, Lyft has announced its aim for a 15% annual increase in gross bookings through 2027. This announcement came during the company’s first-ever investor day, marking a significant moment for the ride-hailing service as it outlines its strategy for the coming years.

Lyft’s aspirations don’t stop at ride-sharing. The company is also setting its sights on an eight-fold increase in its burgeoning advertising business within the same timeframe. This ambitious target would see its advertising gross bookings soar to $400 million by 2027, up from a forecasted $50 million this year, according to Zach Greenberger, executive vice president of Lyft’s Partnership Ecosystem.

The company’s shares responded positively to the news, climbing more than 4% before the market opened on Thursday. This uptick reflects investor optimism about Lyft’s strategic direction and its potential to carve out a larger share of the North American ride-sharing market, where it currently trails behind Uber.

Lyft’s advertising venture, launched in 2022, has already shown promising growth, with a 250% increase in related revenue in the quarter ending March. The company leverages its app, tablets in vehicles, and digital screens atop cars to offer targeted advertising solutions. Greenberger highlighted the retail and hospitality industries as key users of Lyft’s advertising platforms, seeking more measurable and targeted ways to reach consumers.

While Uber, with its larger global footprint and diversified business lines, targets $1 billion in annual ad revenue, Lyft’s focus on growing its core ride-sharing and nascent advertising businesses could help it maintain a competitive edge.

For 2023, Lyft reported a 14% growth in gross bookings, which include the total dollar value of transactions billed to ride-share riders, excluding tips to drivers. The company also noted an adjusted core profit margin of 1.6%, laying the groundwork for its future growth projections.

As Lyft steers towards these ambitious goals, it underscores the company’s commitment to not only enhancing its ride-sharing services but also diversifying its revenue streams through advertising. This strategic pivot could redefine Lyft’s trajectory in the highly competitive mobility market.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Shounak Dasgupta)