Owl Creek Dumps $40.3M Lyft Stake; Uber Trials Subscriptions After 9.6% Fare Spike
Owl Creek dumped 1.9 million Lyft shares worth $40.3 million in Q4 2025, slashing its stake by 77%. Shares have fallen 30% in 2026 after an earnings miss, despite record 945.5 million rides and 9% revenue growth, while Uber tests driver subscriptions after a 9.6% fare surge.
1. Hedge Fund Sale
In Q4 2025, Owl Creek Asset Management sold 1.9 million Lyft shares valued at $40.3 million, reducing its ownership by roughly 77%. The fund executed the sale when Lyft stock traded near its 52-week high of $25.54.
2. Lyft’s Q4 2025 Performance
Lyft reported record rides of 945.5 million and 9% revenue growth to $6.3 billion, yet missed Wall Street earnings expectations. Shares have declined 30% so far in 2026 following the earnings shortfall.
3. Uber’s Subscription Initiative
Uber is recruiting a product manager to develop global driver subscription packages, seeking alternatives to its commission-based model. This move follows a 9.6% increase in ride prices in December 2025 and rising platform fees per trip.
4. Competitive Outlook
Uber’s subscription trials could intensify pressure on Lyft’s driver compensation and pricing, as 60% of consumers report reduced rideshare usage due to higher fares. Lyft may need to adjust its payment structure to maintain driver loyalty and margins.