Uber’s recent tie-up with Hertz and Tesla on the electric vehicle front has garnered a good bit of attention (and market gains for Hertz and Tesla, in particular), but Lyft’s co-founder John Zimmer wants to remind everyone his company was first to pledge to an all-electric fleet future.
Zimmer reiterated in an interview on Yahoo Finance Live on Wednesday a commitment to have an all-electric fleet by 2030. The company is in active discussions with the major automakers to bring EVs to its fleet to be used as part of its FlexDrive platform.
Lyft will use its cash pile of about $2.4 billion and relationships with financing partners to make its vision happen, Zimmer explained.
“We are talking to the OEMs [original equipment manufacturers] and the car manufacturers, and also talking to policymakers,” Zimmer said. “There is a huge shift happening. We feel very well positioned, and we want to bring multiple products to our drivers.”
Hertz revealed last week that Uber has committed to renting 50,000 out of the 100,000 EVs it plans to buy from Tesla.
Zimmer’s EV commentary comes as the ride-sharing giant continued to recover from the COVID-19 pandemic in the third quarter.
Lyft said Tuesday evening it reached adjusted operating profitability for the second straight quarter. Sales improved 73% year-over-year to $864.4 million.
For the fourth quarter, Lyft outlined revenue growth of 63% to 65%. Adjusted operating profits are seen in a a range of $70 million to $75 million.
“We expect Lyft shares to appreciate steadily as the economy reopens (offices, flights, vaccinations) and Lyft addresses the opportunity with an improved cost structure,” wrote Wells Fargo analyst Brian Fitzgerald in a research note to clients.
The analyst reiterated an Overweight rating on Lyft’s stock, or the equivalent of a Buy. Fitzgerald sees fair value for Lyft’s stock at $80, 66% above current levels.