DoorDash and Lyft present contrasting investment cases as the gig economy matures. DoorDash reported fiscal 2025 revenue of approximately $13.7 billion, up 27.9% year-over-year, with net income of nearly $935 million and free cash flow of nearly $2.2 billion. Lyft achieved revenue of close to $6.3 billion, growing 9.2%, but posted net income of approximately $2.8 billion, yielding a net margin of nearly 45%. On valuation, Lyft trades at a forward price-to-earnings ratio of 24.7 times and a price-to-sales ratio of 0.9 times, while DoorDash commands 74.5 times forward earnings and 6.0 times sales. The analysis concludes that DoorDash's higher valuation is justified by its expansion prospects and long-term growth, making it the preferred pick between the two.
DoorDash, Inc. Class A Common StockArticle highlights DoorDash's strong revenue growth, profitability, and free cash flow, concluding it is the better buy.
LYFT IncArticle notes Lyft's lower revenue growth and higher valuation concerns, concluding DoorDash is preferred.
Uber Technologies Inc