Shares of $LYFT ( ▼ 1.91% ) slid about 4% Friday after Wedbush downgraded the ride-hailing company to underperform from neutral, warning that autonomous vehicles pose a bigger threat to Lyft than investors currently appreciate. Rival $UBER ( ▼ 1.08% ) also edged lower in early trading.
Why Wedbush turned bearish
Wedbush analyst Scott Devitt cut Lyft’s price target to $16 from $20, arguing that the market is underestimating how quickly robotaxis could disrupt traditional ride-hailing. Lyft, in particular, is more exposed because it is heavily concentrated in the US market and lacks diversification beyond core ridesharing, unlike Uber.
Robotaxis move from theory to reality
Devitt pointed to rapid progress from autonomous players, especially Alphabet’s $GOOGL ( ▲ 0.72% ) -backed Waymo, which Wedbush estimates could become a $100 billion business and plans to operate in up to 20 cities. $TSLA is also making advances in autonomy. As Waymo scales beyond its testing phase and relies less on third-party integrations, Wedbush expects pressure on ride-hailing platforms to intensify.
The firm warned that 2026 could be a painful year for ridesharing companies if robotaxi adoption accelerates faster than expected, a scenario that appears increasingly plausible.