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Lyft predicts positive bookings for European expansion and new partnerships

Lyft announced on Wednesday that its current quarter gross bookings were above the market's expectations, showing a steady demand for their ride-hailing service as it expands into Europe.

The company has recently completed the nearly $200 million purchase of European mobility platform FreeNow. It also signed a contract with China's Baidu for the introduction of the robotaxis from the search engine giant in the region.

Lyft announced Wednesday a partnership with United Airlines, which will launch later this summer. This partnership allows the airline's customers earn rewards for all Lyft trips.

Lyft’s entry into Europe, which includes partnerships with DoorDash and Chase, positions the company for further collaborations in international markets.

According to LSEG data, Lyft expects gross bookings for the third quarter to range between $4.65 and $4.80 Billion, which is well above the estimated $4.59 Billion.

Uber Technologies, a larger rival that offers food, grocery and ride-hailing services globally, released an optimistic forecast for the third quarter earlier in the day. This was due to its efforts to increase engagement across its unified platforms.

The company said that it is in discussions with private equity firms and bankers to finance the deployment and use of robotaxis, and it has 20 partnerships for self driving technology.

Ride-hailing services are shifting their attention to smaller and medium-sized cities that are dependent on cars to reach new markets and increase revenue.

Lyft reported a core adjusted earnings of $129.4 millions in the second quarter. This was above the average expectation of $124.5.

It predicted current-quarter core profits of $125 to $145 millions, which is largely in line Wall Street estimates. (Reporting from Akash Sriram, Bengaluru. Editing by Sriraj Kulluvila.)

(source: Reuters)