Lyft Q2 revenue plummets 61%

Yahoo Finance's On The Move panel weigh in on Lyft's Q2 earnings report.

Video Transcript

ADAM SHAPIRO: Welcome back to Yahoo Finance "On the Move. We're watching markets right now. The Dow is off about 40 points.

But we're also watching Lyft, which reported earnings. And we see that the shares are off almost 5%. Part of this has to do with the drop in revenue-- no surprise there-- in Q2. But they also had a decrease not only in revenue, but, obviously, of the number of riders.

Let's talk more about these numbers and break them down. Brian, what do you make of this? Are they positioned for a recovery going forward?

BRIAN CHEUNG: Well, as you mentioned, not necessarily a surprise that Lyft, in addition to the other gig economy companies, not necessarily pulling out a very impressive performance in the second quarter. With the travel restrictions and the inability of people to operate as normally, it's no surprise that those rides were going down. But the story for Lyft is really the lack of diversification in their business model relative to the other competitor in what is really a duoploy, which is Uber.

When you consider that Uber, for example, at least had the silver lining of delivery gross revenues off of their Uber Eats platform growing by 103%, Lyft doesn't have anything comparable. Now they do have a number of other business services, when you think about rentals, for example, with bikes. They also have scooter sharing.

Unfortunately, those are all also probably just as equally impacted as the rides business. So I think that's the reason why, when you look at the top line number, which is not surprising, you're wondering how can Uber-- or rather, how can Lyft get out of this if the coronavirus were to be extended? Because at least with Uber, they do have that Uber Eats business.

So I think this is going to be a lingering question as we continue to analyze and work through these two companies battling against each other in the future.