Reasons for the stock rise

Lyft's shares rose sharply on Tuesday after a 73 percent quarterly revenue increase. Lyft welcomed investors with news of the return of a director to the company's business and drivers. This allowed for continued growth during the quarter.

On Tuesday, Lyft, Uber's main competitor in the US market, released its quarterly results, according to co-founder and CEO Logan Green, are "beating the company's forecast at all costs."

Lyft shares rose 12.3 per cent in the post-market on Tuesday following the report. Lyft shares are down 7.75% YTD and down 15.6% in the past month.

Lyft reported a Q3 loss per share of -$0.05, worse than analysts' average forecasts of -$0.03 loss per share.

However, operating margin (before interest, taxes, depreciation and amortisation) was $67.3 million, a significant improvement from $23.8 million in the previous quarter.

Lyft's revenues rose 13% quarter-on-quarter and 73% over the same quarter a year ago to $864.4 million, above Wall Street forecasts of $862.7 million.

The number of monthly active users of the Lyft app rose to 18.9 million in Q3 from 17.14 million in Q2. However, the figure was below analysts' forecasts of 19.7 million. Lyft's revenue per active user rose to $45.63, beating forecasts of $43.89.

It has also been reported that the number of taxi drivers infected with the crown virus epidemic increased by 45 percent compared to a year ago. According to Chief Financial Officer Brian Roberts, once drivers return, Lyft will reduce the cost of driving incentives in Q4. Lyft expects that to fall in the quarter, leading to an increase in profits.

Lyft's fourth-quarter revenue forecast is $930 million to $940 million, up from analysts' estimates of $971.4 million, with EBITDA profit likely to rise to $70 million to $75 million.

Uber shares were also up 5.9 per cent in Tuesday's post-market as companies tend to show a similar revenue growth trend.

Uber will report its Q3 earnings results on Thursday, 4 November.