Lyft shares slumped about 9% on Wednesday after the ride-hailing company warned that lower pricing trends from late last year are expected to continue in 2025, as it tries to match prices with larger rival Uber.

The ride-hailing platform has been aggressively working on luring customers away from Uber through competitive pricing and new features, but faced challenges from wildfires and extreme weather in some crucial markets.

Shares of Lyft Inc. plunged after the company gave a disappointing outlook for first-quarter gross bookings, warning that cold weather has hurt demand for ride hails and bike rentals.

Lyft forecast current-quarter gross bookings below estimates on Tuesday, as its jostles for more riders with larger rival Uber Technologies , while wildfires and extreme weather events disrupted its business in some key markets.