Lyft Shares Are Up Today: What's Going On?

Lyft Inc. LYFT shares are trading higher Wednesday following reports that activist investor Engine Capital has taken a stake in the company and is pushing for a strategic review.

What To Know: According to Bloomberg, the investment firm has acquired about a 1% stake, valued at approximately $50 million and has been engaging with Lyft management to express concerns over the company's stock performance, strategic direction, and corporate governance.

Engine Capital is urging Lyft to conduct a strategic review, improve capital allocation, and eliminate its dual-class share structure, which currently gives co-founders disproportionate control. Initial reports mistakenly suggested Engine Capital's stake was $500 million, but that figure has since been corrected.

Lyft has struggled over the past year, with its stock losing more than a third of its value, leaving the company with a market capitalization of around $5.4 billion. Investors remain skeptical about the long-term viability of Lyft's business model, particularly as autonomous vehicle technology advances. Unlike its chief competitor, Uber Technologies Inc. UBER, which has a global footprint and diversified revenue streams, Lyft operates solely in the US and Canada, making it more vulnerable to domestic competition and shifts in the transportation industry.

Lyft has not yet commented on the reports and Engine Capital has declined to provide further details.

LYFT Price Action: Lyft shares were up 2.29% at $12.50 at the time of writing, according to Benzinga Pro.

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