Lyft sees sustained profit starting in third quarter on cost cuts, demand rebound

Lyft on Tuesday surprised Wall Street with significantly lower losses than expected and said it would deliver dependable profit on an adjusted basis beginning in the third quarter thanks to cost cuts that allow the company to earn more per ride.

The results come as Lyft emerges from more than a year of pandemic-related restrictions during which ridership and revenue plummeted. The company said it expected a strong rebound in U.S. travel in the third quarter, when many homebound Americans who hunger for travel are likely to be fully vaccinated against Covid-19.