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STORY: Shares of Lyft jumped as much as 11% Thursday morning after the ride-hailing firm said at its first investor day that it is targeting a 15% annual increase in gross bookings through 2027.

Gross bookings consist of the total dollar value of transactions billed to ride-share riders including taxes, tolls and fees, but excluding tips to drivers.

It added that its advertising business is expected to grow eight-fold during the same period.

The forecast signals Lyft could maintain its position in the North American ride-sharing market, where it lags Uber, even as both the companies seek to diversify their revenue streams through offerings such as advertising and user subscriptions.

The company, like Uber, allows advertisements within its app, as well as on tablets in vehicles and digital screens on top of cars.

Lyft launched the advertising business in 2022 and reported growth of 250% in related revenue in the recent quarter ended March.

It said major advertisers include retail and hospitality businesses.