Surging Gas Prices Boost Lyft's Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: Fool
- Rising Gas Prices: As of May 7, 2026, the national average price for regular gasoline hit $4.55 per gallon, up $1.40 from last year and the highest since the 2022 energy crisis, likely driving more consumers towards ridesharing services like Lyft.
- Behavioral Shifts: An Ipsos survey found that 44% of adults have cut back on driving and 34% have altered vacation plans, with increased public transit ridership indicating a significant impact of high gas prices on travel behavior, benefiting Lyft directly.
- Strong Financial Performance: Lyft reported Q1 2026 gross bookings of $4.9 billion, a 19% year-over-year increase, with active riders reaching a record 28.3 million, demonstrating robust growth momentum in a high gas price environment.
- Market Mispricing: Despite Lyft's core metrics hitting new highs and free cash flow exceeding $1.1 billion for the first time, its stock trades below the Wall Street consensus price target of $19.43, indicating a market undervaluation of its growth potential and presenting a solid long-term investment opportunity.
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Analyst Views on LYFT
Wall Street analysts forecast LYFT stock price to rise
29 Analyst Rating
7 Buy
20 Hold
2 Sell
Hold
Current: 13.820
Low
16.00
Averages
24.06
High
32.00
Current: 13.820
Low
16.00
Averages
24.06
High
32.00
About LYFT
Lyft, Inc. provides global mobility platform offering a mix of rideshare, taxis, private hire vehicles, executive chauffeur services, car sharing, bikes and scooters. Its Lyft mobile application (the Lyft App) connects riders with drivers for on-demand ride services and supports a variety of other multimodal solutions. The Company is also engaged in licensing and data access agreements, the sale of bikes and bike station software and hardware, advertising services, riders renting through its network of shared bikes and scooters, drivers renting vehicles through Express Drive. Its ridesharing marketplace includes taxis, private hire vehicles, executive chauffeur services and car sharing. Its Express Drive is a car rental program for drivers. Through its Express Drive program, drivers can enter into rental agreements and rental car partners for vehicles that may be used to provide ridesharing services on the Lyft Platform. It owns Freenow, a multimodal app with taxi offering at its core.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Acquisition Context: Last October, Lyft acquired Glasgow-based TBR Global Chauffeuring for $110 million, expanding its ride-sharing options into the high-end luxury market, with TBR operating across 120 countries and over 3,000 cities, thereby enhancing Lyft's global service capabilities.
- Existing Partnerships: Lyft currently collaborates with United Airlines, allowing MileagePlus members to pay for Lyft rides with earned miles and earn up to 3 points per dollar on airport trips with Alaska and Hawaiian Airlines, which further enhances customer loyalty.
- Market Potential: By pursuing a potential corporate partnership with United Airlines, Lyft aims to attract more high-end customers, leveraging its newly acquired TBR services to enhance its competitive position in the market, which is expected to drive booking growth and free cash flow.
See More
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- Innovative Legal Framework: The passage of a ballot measure in November 2024 allows ride-share drivers to organize and collectively bargain over pay and benefits, fundamentally changing their labor rights and raising industry standards.
- Minimum Wage Standard: Massachusetts Attorney General secured a settlement with Uber and Lyft mandating a $32.50 hourly minimum wage for drivers and a $175 million payout to resolve claims of misclassification, further securing drivers' economic interests.
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See More
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- Union Backing: The App Drivers Union is supported by the powerful 32BJ Service Employees International Union and the International Association of Machinists and Aerospace Workers, enhancing its bargaining power and influence, signaling an increase in driver representation within the industry.
- Market Reaction: Over the past six weeks, shares of Uber and Lyft have declined by 5.7% and 5.2%, respectively, reflecting market concerns regarding the driver rights movement and its potential impact, which may lead to significant changes in the companies' operational models.
See More
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