Investors have been encouraged by many technology companies now having a sharper focus on growing profits rather than simply chasing growth at any price, but ride-hailing app Lyft (LYFT:NASDAQ) seems to have missed the memo.

The San Francisco-based company posted its worst one-day share price fall since its 2019 stock market listing after it dramatically missed earnings forecasts for the three months to 31 December. Analysts had predicted $0.15 per share net profit but were shocked by losses of $0.74. Lyft also said first-quarter 2023 revenue would come in below analyst expectations.

That saw Lyft’s share price dive 36% on 10 February to entirely wipe out year-to-date gains and led analysts at US broker Wedbush to call into question whether the company’s business model can scale in a profitable way.

It is ‘a winner take-all ride-share market with Uber (UBER:NYSE) the winner and Lyft looking like the major loser with a murky path forward,’ said analysts Daniel Ives and John Katsingris.

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