September trends appear strong for UBER and Lyft in U.S. mobility, with pricing higher against seasonally strong demand trends.
Needham analyst Bernie McTernan reiterated Uber Technologies Inc
UBER's average prices reached the highest in the analyst's observed data over the past two years.
On a mean basis, UBER was +31% more expensive than LYFT, also at peak levels and relative to similar pricing to start the year in our data.
While UBER still has a wait time advantage, it's surprising LYFT cannot take a more meaningful share given the relative change in pricing from the beginning of the year, suggesting structural reasons against it or at least a longer path than 7 months of lower pricing.
UBER and LYFT prices increase after Labor Day, but LYFT's average pricing discount widens, implying greater willingness and necessity for UBER to surge as demand is coming back.
Uber's demand strength generally tracks the bullish remarks made by CEO Dara Khosrowshahi at a recent competitor conference, talking about tailwinds for return to office and travel, in particular for their reserve product.
Industry wait times and demand drivers suggest higher demand for ride-sharing. UBER maintained its wait time advantage, but the spread has declined -27% to 1.2 minutes, the narrowest since May '23. LYFT's wait times have been broadly improving since May, which could be a function of supply catching up to demand following price cuts earlier this year.
Price Actions: UBER shares traded higher by 2.25% at $45.27 on the last check Wednesday. LYFT shares traded higher by 2.92% at $10.21.
