Rothschild Sees Lyft Benefiting From the Robotaxi Shift Despite Investor Concerns

Lyft could benefit from the growth of autonomous vehicles, even as some investors worry robotaxis may disrupt traditional ride-hailing platforms, according to Rothschild & Co. Redburn.

The investment firm upgraded Lyft to buy from neutral and raised its price target to $22 from $17, implying roughly 54% upside from Tuesday’s close.

While autonomous vehicles are often viewed as a threat to incumbent ride-hailing companies, Rothschild analyst James Goodall said Lyft is well positioned to remain a key aggregator of ride-hailing demand while providing commercial and operational support to a growing pool of AV suppliers.

Lyft shares have fallen 26% this year as the company faces driver-related cost pressures and rising competition from robotaxi operators such as Waymo. Still, Rothschild said Lyft could use driverless technology to strengthen its business and potentially outperform newer AV-focused rivals.

The firm pointed to Lyft’s pricing, matching and dispatching systems, along with its broader infrastructure, as assets that could help maximize autonomous vehicle utilization. Rothschild also noted that Lyft has more experience navigating complex regulatory environments than newer competitors.

Goodall highlighted Lyft’s partnerships with several autonomous vehicle companies, saying they could help the platform capture growth if robotaxis become more widely deployed.

“For Uber and Lyft, the more robotaxi providers that come to their platforms, the better and the stronger their long-term positions should be,” Goodall wrote. “Each AV partner brings more AV supply, greater global coverage and, as a result, decreases the possibility that AV developers can go it alone.”

Rothschild’s bullish view contrasts with much of Wall Street. Among 49 analysts covering Lyft, 32 rate the stock a hold, while 15 have a buy or strong buy rating, according to LSEG data.

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