Lyft, Inc. (LYFT - Free Report) plans to switch to electric vehicles entirely by 2030, i.e., every single vehicle on its platform would be electric in a decade’s time.
Through this move, the company aims to reduce greenhouse gas emissions, a large contributor to which is the ride-hailing services that Lyft and Uber Technologies (UBER - Free Report) provide. Ride-hailing services are believed to generate approximately 50% more carbon emissions than private car trips. Consequently, the two companies have been asked to switch to more electric vehicles.
Both Lyft and Uber carry a Zacks Rank #3 (Hold).
In a blog post, the company revealed that to reach its goal of 100% electric vehicles, it has tied up with the Environmental Defense Fund. The initiative includes Lyft’s cars in Express Drive rental-car program for drivers, consumer rental and autonomous vehicle programs, as well as drivers’ personal cars used on its platform.
The company feels that the transition would be highly beneficial to its drivers. Although upfront costs of electric vehicles are currently greater than gas-powered cars, electric vehicles mean reduced costs for drivers in the long run, since they have lower fuel and maintenance expenses. Lyft drivers operating electric vehicles currently save an average of $50-$70 per week only on fuel costs. With the company expecting electric vehicle battery costs to reduce over time, these savings are expected to go up.
A flipside to this long-term environmental protection initiative is that “net emissions from cars used on the Lyft platform may increase in the short term” as the company will terminate its existing carbon offsets program in order to focus on its long-term goal of zero emissions.
Some better-ranked stocks in the Internet - Services industry are Zscaler Inc (ZS - Free Report) and Dropbox Inc (DBX - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both these stocks have an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the preceding four quarters.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>