Lyft, Inc. reported robust demand in the second quarter, though the company is signaling a deceleration in business growth for the coming period.

A surge in European taxi operations and record-high booking volumes from partner channels pushed the average fare per ride higher. These factors helped Lyft, Inc. exceed its own guidance for the quarter.

On Thursday after the market close, Lyft, Inc. released its second-quarter earnings. Total booking transaction value climbed 23% year-over-year to $5.5 billion, surpassing the company's May forecast of 18%–21% growth. The steady expansion of European taxi services, along with a record share of reservations from partner channels, lifted the average price per ride. However, management projects that third-quarter booking transaction value growth will slow to between 15% and 19%.

For the quarter ending June 30, revenue rose 16% to $1.84 billion. Free cash flow came in at $319.6 million, down slightly from $329.4 million in the same period last year. Following the earnings release, Lyft, Inc. shares surged approximately 6%.

In comparison, Uber Technologies, Inc. reported second-quarter revenue growth of 12%, with both its delivery and ride-hailing segments seeing significant expansion in order volumes.

Both companies continue to face persistent questions about how autonomous ride-hailing services will reshape the industry's business model. Uber Technologies, Inc. has built a broad ecosystem of autonomous driving partnerships. Lyft, Inc. maintains a more streamlined partner list: it has collaborated with May Mobility in Atlanta since this year, partnered with Mobileye in Dallas, and launched a project with Waymo in Nashville.