All posts tagged: Lyft

Uber and Lyft threaten to stop service in Minneapolis over minimum wage law

Uber and Lyft threaten to stop service in Minneapolis over minimum wage law

Uber and Lyft have said they’ll stop service in Minneapolis if a minimum wage law for drivers goes into effect. Michael M. Santiago/Getty Images hide caption toggle caption Michael M. Santiago/Getty Images Uber and Lyft have said they’ll stop service in Minneapolis if a minimum wage law for drivers goes into effect. Michael M. Santiago/Getty Images Uber and Lyft have vowed to suspend service in Minneapolis. The announcement comes after a dramatic back-and-forth tussle with city leadership over the past year, which boils down to minimum wage pay for Uber and Lyft drivers. Working with a coalition of ride-hail drivers, the Minneapolis city council passed a bill last August that would require Uber and Lyft to pay drivers a minimum of $1.40 per mile and $0.51 per minute — rates that the city approximates would add up to drivers earning the $15.57 minimum wage after expenses. Uber and Lyft drivers are only paid when they’re giving passengers a ride, not while they’re waiting, so minimum wage calculations aren’t based on hourly pay. Currently, drivers in …

Uber and Lyft Threaten to Pull Out of Minneapolis After City Council Vote

Uber and Lyft Threaten to Pull Out of Minneapolis After City Council Vote

Uber and Lyft are threatening to pull out of Minneapolis after a City Council vote there guaranteed a minimum hourly wage to drivers. The council voted 10 to 3 on Thursday to override a mayoral veto of an ordinance that requires ride-hailing services to pay drivers a minimum rate of $1.40 per mile and 51 cents per minute to ensure that they earn the equivalent of local minimum wage of $15.57 per hour. The wage ordinance was first approved last week, but was vetoed by Minneapolis’s mayor, Jacob Frey. Both Uber and Lyft said they would stop operating in the city when the law takes effect on May 1. Uber added that it would leave the Minneapolis metro area, including the airport, making it the first metro area in the country without Uber’s presence. The companies argued that they would be forced to pass the increased cost on to riders, which would result in drivers eventually earning less. In a statement, Lyft called the bill “deeply flawed,” adding, “this ordinance would make rides unaffordable for …

Lyft earnings report error prompts shareholder lawsuit

Lyft earnings report error prompts shareholder lawsuit

Lyft has been sued by shareholders for securities fraud after a mistake in a recent earnings release about a key profit metric sent the ride-sharing company’s stock price on a wild ride up, and then down. In a proposed class action on Tuesday, shareholders said Lyft was careless in initially saying on Feb. 13 that one of its profit margins would expand in 2024 by 500 basis points, or 5 per centage points, when it actually expected 50 basis points. The mistake disclosed at 4:05 p.m. EST (2105 GMT) triggered a buying frenzy that caused Lyft’s share price to rise 67 per cent in a half-hour. “It was a bad error, and that’s on me,” Chief Executive David Risher told CNBC the next day. Shareholders said the stock shed most of the gains after Chief Financial Officer Erin Brewer gave the correct margin forecast at 4:47 p.m. on an investor conference call. They said Lyft waited another seven minutes to formally admit error. “The misrepresentation was so apparent that it went beyond mere negligence, and …

A Valentine’s Day drivers strike hits Uber, Lyft and DoorDash

A Valentine’s Day drivers strike hits Uber, Lyft and DoorDash

Los Angeles Lyft driver Shan Sedigh held out his phone. On the screen, Lyft’s app detailed a Feb. 9 ride for which Sedigh’s passenger paid $105.40. Sedigh earned a little more than half of that at $53.11. “This is why I’m here,” Sedigh said, surrounded by scores of ride and food delivery drivers Wednesday as they protested outside an Uber drivers support hub in Westlake, west of downtown Los Angeles, part of a one-day work stoppage to demand better wages. “I pay gas, insurance, repairs,” the 50-year-old West Hills resident said. “Lyft just connects the driver to the customer. Why do they get 50%?” The one-day strike hit more than 20 major cities across the U.S. and Canada, including Los Angeles. Food delivery drivers in London joined in, vowing to turn off the apps between 5 and 10 p.m., according to the Associated Press. The action targets what is typically a busy holiday for ride-hailing and delivery giants. Although there have been sporadic, isolated protests by drivers in various cities in recent years, organizers say …

LYFT Adds  Billion In Market Cap, Then Crashes, As Idiot Algos Get Duped By Typo In Earnings Release

LYFT Adds $3 Billion In Market Cap, Then Crashes, As Idiot Algos Get Duped By Typo In Earnings Release

For a perfect example of just how completely broken everything has become in this so-called market, look no further than LYFT which first exploded more than 60% on what can very generously be described as a modest beat to estimates… before it all came crashing down! Here’s what happened: Lyft reported Q4 results that were in line on revenue ($1.22BN up just 4% YoY and right on top of estimates of $1.22BN), and also a modest beat on EPS ($0.18, exp. $0.08); it also issued projections (which may very well be dead wrong), that just barely beat expectations: the company expects Q1 EBITDA between $50 and $55MM, and now sees Q1 gross bookings of $3.5-$3.6BN, also just above the $3.48BN estimate. Furthermore, in Q4, Lyft said the number of active riders on its platform increased 10% from a year earlier – more than double the rate of revenue growth so clearly it is failing to maximize its revenue upside – to 22.4 million. All in all, a modest beat – even with clearly gamed guidance …

Uber, Lyft, and DoorDash set Valentine’s Day strike: What you need to know

Uber, Lyft, and DoorDash set Valentine’s Day strike: What you need to know

If you love the idea of love, then you can prove it to me this Valentine’s Day by not calling an Uber or a Lyft or getting food delivered on DoorDash. The ride-sharing platforms and food delivery app are expected to go on strike on Valentine’s Day as part of their continued fight for fair pay. This is the first time the group has gone on strike since Uber and Lyft went public in 2019. This comes about a week after Lyft said it would guarantee pay for drivers. If a driver made less than 70 percent of what riders paid — after external fees — Lyft said it would pay the difference, Reuters reported. The move was the first-ever pay guarantee in the industry. “We are constantly working to improve the driver experience,” Lyft told Reuters on Monday. SEE ALSO: Amazon workers went on their ‘biggest ever global strike’ on Black Friday But the drivers are accusing both Lyft and Uber of taking disproportionately large commissions. The Justice For App Workers coalition, which represents …

Lyft picks comfort over sharing in bid to compete with Uber

Lyft picks comfort over sharing in bid to compete with Uber

Lyft is introducing a “more affordable sort of higher-end ride” in an attempt to offer ride-hail products that customers actually want, CEO David Risher said Wednesday during the company’s third-quarter earnings call. The move comes after Lyft has been successful, by some metrics, in regaining market share from Uber by slashing its ride-hail fares. In Q3, Lyft reported 22.4 million active riders, up from 21.5 million in the second quarter, and increased gross bookings of around $3.6 million. Now that Lyft has brought on some new riders, the task ahead is to retain those customers. Risher thinks that “Extra Comfort,” a new product that he teased during the earnings call, could tap a small segment of Lyft’s ride volume today that has the potential to grow over time. “The cars are newer, the drivers are more experienced. The legroom is a little bit bigger. You can choose a quiet ride, and so on and so forth,” said Risher, noting that the product would be priced at $1 to $2 above normal rides. “You’Il see it …

Uber and Lyft pay 8M to settle wage-theft complaints in New York

Uber and Lyft pay $328M to settle wage-theft complaints in New York

Uber and Lyft have agreed to pay drivers in New York a combined $328 million to settle wage-theft complaints. The settlement is the result of state attorney general Letitia James’ investigation into whether the companies collected certain fees and taxes from drivers rather than passengers. The investigation also looked into whether companies failed to provide paid sick leave to drivers. The settlement is a win for drivers, not only because it provides backpay for allegedly stolen wages, but also because it secures a statewide right to minimum wage and provides paid sick benefits. “The companies are all but formally acknowledging that these drivers are in fact their employees who deserve the employment rights all other workers deserve,” said Andrew Wolf, assistant professor at Cornell University’s School of Industrial & Labor Relations. Wolf also noted that the settlement displays how gig companies have historically shifted all the risks for employment onto drivers. “Ride-share drivers work at all hours of the day and night to take people wherever they need to go,” James said in her statement. …

Lyft to pay M fine to SEC for failure to disclose board member’s role in pre-IPO share sale

Lyft to pay $10M fine to SEC for failure to disclose board member’s role in pre-IPO share sale

Lyft has agreed to pay a $10 million fine over a U.S. Securities and Exchange Commission charge that the ride-hailing company failed to disclose a board director’s role in the sale of $424 million worth of private shares before to its initial public offering.  The SEC said Monday that prior to Lyft’s IPO in March 2019, a board director arranged for a shareholder to sell its shares to a to a special purpose vehicle set up by an investment adviser affiliated with the same director. The SEC said this director, who the agency did not name, then contacted an investor interested in purchasing the shares through the SPV. Lyft approved the sale and even secured a number of terms in the contract, according to the SEC. The director received “millions of dollars” in compensation from the investment adviser for his role in structuring and negotiating the deal, the SEC said. And yet, Lyft never disclosed this information. The SEC’s order finds that the director left the Board at the time of the transaction. Lyft agreed to …

Lyft takes a page from Uber’s playbook: Ads

Lyft takes a page from Uber’s playbook: Ads

Ride-hailing giant Lyft will start displaying ads in-app, as well as via in-car tablets, rooftops and bikeshare stations. “Lyft has a captive audience throughout their entire ride journey – waiting for their car, matching with their driver, and in ride – and brands can now reach riders in relevant and tailored ways across our suite of Lyft Media products,” said Zach Greenberger, Lyft’s chief business officer, in a statement. I know what you’re thinking. Thank goodness, more ads! Even better, ads via the app that knows exactly where you are and where you’re going! Getting dropped off at a friend’s place who happens to live near a movie theater? Don’t be surprised if you see an ad for whatever is playing at that cinema when you check your ETA. Lyft getting into ads shouldn’t surprise anybody. Uber launched its own ads unit in October 2022, and the company forecasts ad revenue will hit $650 million this year. Compared to the $8 billion in revenue Uber pulled via mobility, delivery and freight in Q2, $650 million …