Tina Bellon and Nivedita Balu

NEW YORK (Reuters) – Lyft Inc (NASDAQ: Tuesday) announced an adjusted profit for their third quarter. It was a difficult year, with many cost reductions due to pandemics. The company also saw more riders return to its ride-hailing service.

Uber Technologies (NYSE 🙂 Inc competitor said that consumers are now traveling after having been homebound for over a year, a sign of a wider U.S. economy recovery.

Lyft President John Zimmer stated that the number of rides to airports, which is among the most lucrative routes, has tripled since last year. The number of active riders rose by 11%, to 18.9million in the third quarter ending Sept. 30,

Lyft reported that it was profitable for the second consecutive time over its nine year history.

Lyft’s adjusted earnings before taxes, interest, depreciation or amortization of $67.3million was reported. This measure excludes stock-based compensation and one-time costs. According to data from Refinitiv, the metric was significantly higher than an estimate of $30.7 million by Wall Street.

Lyft lost $71.5 million or 21 cents per share in net losses, down from $459.5 Million or $1.46 a share last year. Zimmer did not say when they would be aiming for net profits.

Uber will release its results after the bell on Thursday. At the end September, Uber stated that it expects adjusted EBITDA in the third quarter to be at or near zero.

Lyft reported that the driver supply increased by 45% last year. However, Lyft did not disclose how much driver numbers were different from pre-pandemic levels.

Zimmer told Reuters in an interview, that COVID-19 vaccines have made drivers feel safer and are allowing them to get back on the roads in larger numbers since September when federal unemployment payments were increased.

He said, “We are seeing the right things happen in the marketplace and will start to taper incentives within the quarter ahead.”

Lyft and Uber spent heavily to attract drivers as the pandemic resulted in new positions at Amazon.com Inc.

Zimmer stated that most riders hailing on ride-hail were working part-time to earn extra income and take advantage of the gig economy.

He said, “I am very positive about supply conditions and our ability in the market for talent, considering the kind of work that we offer.”

According to Refinitv IBES data, Lyft’s Third Quarter revenue increased by 73% to $864.4 Million, surpassing the Wall Street estimate at $862.68 millions.

Lyft’s revenue increased by around 13% compared to the previous quarter. However, total expenses and costs rose only 4% in the second quarter. This is a clear indication that Lyft has kept its promises of reducing both fixed and variable cost. Lyft’s contribution margin (which measures the company’s profitability after excluding variable cost) climbed to an all-time high of 59.4%.