10 Best TaaS Stocks to Invest in According to Hedge Funds

3) Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 51

Lyft, Inc. (NASDAQ:LYFT operates a peer-to-peer marketplace for on-demand ridesharing in the US and Canada. The company operates a peer-to-peer marketplace for ridesharing, allowing users to request rides via its app. These are then fulfilled by a network of drivers using their personal vehicles. Thus, the company provides on-demand transportation without the need for vehicle ownership.

Lyft, Inc. (NASDAQ:LYFT) continues to focus on product innovations targeted at increasing rider growth and frequency. These include the introduction of new features such as Price Lock, which focuses on retaining and acquiring customers by offering predictable pricing. Wall Street believes that this innovation should result in increased user adoption and ride frequency. Furthermore, Lyft, Inc. (NASDAQ:LYFT) introduced 33 new products and features in 2024 and plans to enhance its service offerings.

Next, Lyft, Inc. (NASDAQ:LYFT)’s focus on strengthening its ride-sharing business should drive long-term growth. The company plans to introduce autonomous vehicles next year. Furthermore, it plans to establish partnerships with Mobileye Global and May Mobility. The introduction of AVs will eliminate the need for human drivers, reducing labor costs, one of the significant expenses in Lyft, Inc. (NASDAQ:LYFT)’s current ride-hailing model. With lower operating costs, the company can offer more competitive pricing.

This should attract price-sensitive customers and enhance its market share. Furthermore, autonomous fleets can be scaled more easily. This can help in expansion into new markets and growth in user engagement. As a result of this growth, Lyft, Inc. (NASDAQ:LYFT) can also enhance its take rates, which measure the percentage of revenue the company retains after paying drivers.