Lyft (LYFT) has surged more than 87% in the past six months, with the latest boost driven by this week’s high-profile partnership with Alphabet’s (GOOGL) Waymo to bring robotaxis to Nashville. The upside case is straightforward: higher utilization, reduced operating friction through improved fleet management, and added brand credibility from teaming up with the leader in autonomy. Still, the competitive landscape is crowded and well-capitalized, leaving me intrigued but ultimately Neutral.
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Lyft and Waymo Gear Up for 2026 Nashville Robotaxi Rollout
So here’s what’s on paper. Waymo plans to bring fully autonomous rides to Nashville in 2026. Lyft’s Flexdrive subsidiary will manage the vehicles (maintenance, charging infrastructure, depot operations), and rides will start on the Waymo app before being dispatched on Lyft’s network later in 2026 via a “dynamic marketplace integration.” Therefore, it appears that both apps can utilize the same fleet to enhance matching and asset utilization.
That integration is quite crucial because idle robotaxis are expensive robotaxis. If Waymo can drive more demand through both apps while Lyft keeps cars charged, serviced, and ready, the unit economics will improve. Lyft says it will build a purpose-built AV facility in Nashville to support uptime, which should help improve reliability and ETAs, two key pain points for riders and a significant cost line for operators.
There is one more edge I think is worth noting, which revolves around Waymo’s safety and scale data. The company claims its Driver has logged over 100 million autonomous miles on public roads and shows five times fewer injury-causing collisions in cities where it operates, which lends credibility that can accelerate local adoption and regulatory comfort. If that translates into more rides per vehicle, Lyft benefits through a higher take on each matched trip.
The Hard Part: Scale, Margins, and Share
But now zoom out, and the competitive picture is still tough. Uber (UBER) finished Q2 with 180 million monthly active platform consumers (MAPCs), 3.3 billion trips, and $46.8 billion in gross bookings, a global flywheel that pushes demand across mobility and delivery. Lyft, by contrast, reported 26.1 million active riders, 234.8 million rides, and $4.49 billion in gross bookings in Q2. Margins echo that reality. Uber’s adjusted EBITDA margin was 4.5% of gross bookings in Q2; Lyft’s was 2.9%.
And the near-term noise isn’t gone. Earlier this year, Lyft faced criticism for its softer booking outlooks, which reminded us that demand can fluctuate and that share battles with Uber can pressure pricing. Regulatory and legal hurdles also arise. For instance, a $19.4 million New Jersey settlement was recently reached over driver classification practices.
Now, none of these are thesis-breakers alone, but together they keep execution risk elevated, attract more driver liquidity, and support faster product iteration. Those advantages make price competition and promotional wars harder for Lyft to win for long stretches without denting profitability, in my view.
Lyft Looks Cheaper Than Uber, But With a Narrower Moat
On consensus numbers, Lyft screens “cheaper.” The market forecasts FY2025 EPS at $1.21 for Lyft (rising to $1.40 in 2026), compared to $2.91 for Uber in 2025 and $3.54 in 2026. Wall Street’s estimates also point to a ~18x forward P/E for Lyft in 2025 versus roughly 33x for Uber. Why the spread? Uber’s platform has multiple engines (delivery, ads, and memberships) that drive higher margins and better cash conversion. Consensus also expects Uber’s EPS growth to re-accelerate in the out-years (2026–27), a dynamic that typically supports a richer multiple.
Put differently, Lyft is cheaper because the moat is narrower. It’s primarily U.S./Canada rideshare, with fewer cross-sell surfaces and lower margins today. The Waymo tie-up could help Lyft punch above its weight with higher fleet utilization, better reliability optics, and a differentiated AV offering in a marquee city. Still, it doesn’t instantly erase Uber’s scale advantages or change Lyft’s capital intensity as it builds AV support infrastructure.
Is LYFT a Good Stock to Buy Now?
Wall Street is relatively wary of LYFT stock, despite its prolonged rally. Lyft is carrying a Hold consensus rating based on six Buy, 21 Hold, and one Sell ratings over the past three months. Still, LYFT’s average stock price target of $18.64 suggests around 16% downside from current levels, implying that analysts think Lyft might have gotten overvalued following its recent gains.
Lyft’s Nashville Robotaxi Plan Looks Smart, But Execution Is Key
All in all, I like the Nashville plan with Waymo because it’s practical and leverages the strengths of both parties. If the marketplace integration works, Lyft can boost utilization and brand perception, while Waymo gains a broader funnel of riders, making it a win-win.
Still, competition remains fierce, and Uber’s scale continues to impact margins, cash flow, and product velocity. With the stock up sharply and the multiple already baked in, better execution is needed for me to change my stance. At the same time, I watch how (and how fast) this partnership converts into increasingly profitable rides.