Lyft posts record bookings, but higher promotions fuel profit miss

Lyft beat analysts’ revenue estimates for the second quarter on Thursday as a surge in riders and trips lifted bookings ‌to a ⁠record, ⁠though heavier spending on promotions left net income short of expectations.

The ride-hailing services provider has ​stepped up spending on incentives and loyalty programs to attract and retain customers and sustain ​growth.

“Marketing investments relate to traditional marketing at its core, but that’s also the line in our P&L where we house rider incentives and so ​what you’re seeing really is an increase on ⁠a year-over-year ‌basis is rider incentives,” Chief Financial Officer Erin Brewer ​told Reuters.