All posts tagged: Lyft

Lyft wants to kill surge pricing

Lyft wants to kill surge pricing

[ad_1] Lyft has been cutting fares in order to secure more riders, and it’s working. Bu that success has come with a (literal) cost. The ride-hail company reported Tuesday during its second quarter 2023 earnings an increase in riders and decrease in revenue per active rider. That discrepancy was fueled by a decision by the company to “price in line with the market,” according to CEO David Risher. Lyft’s revenue per rider decreased almost 5% quarter-over-quarter, while the number of active riders increased in the second quarter to 21,487 riders, up from 19,552 in the first quarter. Lyft appears to be not only trying to keep prices competitive with Uber, it’s also working to kill off surge pricing, or “primetime” as the company calls it. During Tuesday’s earnings call, Risher said that surge pricing might work to incentivize more drivers during peak service, but it also acts as a demand suppressor when riders don’t want to pay exorbitant fees just to get home after work. “[Primetime pricing] is a bad form of price raising,” said Risher. …

Lyft shares pop, then plop, as it predicts slow and steady growth

Lyft shares pop, then plop, as it predicts slow and steady growth

[ad_1] Lyft made less money per active rider in the second quarter — something that might normally give investors pause. Yet, the ride-hailing giant’s stock price initially rocketed nearly 14% in after-hours trading following its Q2 2023 earnings report. The stock then shed its after-hours gains shortly before this story went live. Lyft’s enthusiastic investors seemed to be reacting to its positive outlook for its third fiscal quarter. While Lyft’s Q2 revenue matched Wall Street estimates of $1.02 billion — a mere 2% increase from the $1 billion in revenue Lyft pulled in Q1 — the company forecasted a gain of 11% to 13%, or $1.13 billion to $1.15 billion, in Q3. According to Yahoo Finance data, analysts only expected Lyft to reach $1.09 billion next quarter. Lyft’s revenue per rider decreased almost 5% quarter-over-quarter, a result of the ride-hailing giant’s attempt to keep fares low to compete with Uber. The upshot? Lyft saw its number of active riders increase in the second quarter to 21,487 riders, up from 19,552 in the first quarter. But …

Lyft co-founder Logan Green retains board seat despite shareholder opposition

Lyft co-founder Logan Green retains board seat despite shareholder opposition

[ad_1] Logan Green, the co-founder and former CEO of ride-hailing platform Lyft, will remain on the company’s board despite opposition from some shareholders, according to preliminary results from the company’s annual shareholder meeting Thursday. The SOC Investment Group, and organization that says it holds corporations and leadership accountable for irresponsible and unethical corporate behavior, sent a letter to Lyft shareholders in May urging them to vote against Green’s position on the board. The group said Green “bears particular responsibility for failing to properly address mounting concern over rideshare driver safety.” The group cited research that found ride-hail drivers have experienced unsafe working conditions such as verbal abuse, physical assault, robbery, carjacking and even murder. Green, as co-founder and CEO, continuously overlooked his responsibility to address these concerns and keep drivers safe, they argued. SOC also accused Lyft of failing to provide updated information about driver safety and for reporting assaults inconsistently The group pointed to a California Public Utilities Commission report that showed 9,959 assault or harassment cases in 2021, which it says was inconsistent …

Lyft shares tumble as investors react to dim outlook

Lyft shares tumble as investors react to dim outlook

[ad_1] Lyft shares tanked as much as 12% moments after the company reported first-quarter earnings as investors placed more weight on a dim outlook and lower quarter-over-quarter revenue than other financial gains.  Shares have since stabilized in after-hours trading, now trading down about 10%.   Lyft beat both its own revenue expectations and Wall Street’s, but it wasn’t enough to assuage investors focused on the ride-hailing company’s future.  The company closed the first quarter of the year with $1 billion in revenue, up 14% from the same quarter last year. It should be noted that its Q1 revenue is lower than $1.2 billion it generated in Q4. Analysts had expected $977 million for the first quarter, and the company promised $975 million in February.  That revenue gain is on top of a net loss of $187.6 million, a 4.7% improvement from the $196.9 million it lost in the same period last year. It’s also significantly better than the $588.1 million in net losses posted in the fourth quarter of 2022. Lyft attributed much of that loss …

Stripe’s internal valuation gets cut to  billion

Stripe, a longtime partner of Lyft, signs a big deal with Uber

[ad_1] Growth at $50 billion fintech Stripe has been slowing this year, but one of its key strategies to reverse that course got a decent push today: Stripe is announcing that it has inked a “strategic payments partnership” with Uber. The pair will work together initially on selected services in eight of Uber’s biggest markets, including the U.S., the U.K., Canada, Mexico, Australia and Japan. Some context on this deal: Uber’s big U.S. rival Lyft has been a longtime marquee customer of Stripe’s for payments, and whether or not it was true, that was one reason some assumed Uber and Stripe would not work together. Uber is, however, a much bigger beast, at close to $100 billion transacted annually (Stripe processed $817 billion last year). And Uber is not just a force globally but in the U.S. specifically, where one estimate from YipIt (via WSJ) puts Uber’s rideshare market share currently at a whopping 74%. Lyft will remain a customer of Stripe’s, Stripe president Will Gaybrick confirmed to TechCrunch. Financial terms of the deal are …

Lyft layoffs arrive, GM kills off the Chevy Bolt and Tesla makes a ‘deep fake’ defense

Lyft layoffs arrive, GM kills off the Chevy Bolt and Tesla makes a ‘deep fake’ defense

[ad_1] The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive the full edition of the newsletter every weekend in your inbox. Subscribe for free.  Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.  We knew it was coming, and welp it did. I’m talking about Lyft and the layoffs that newly appointed CEO David Risher said would occur this week. Here’s the breakdown: 26% of its workforce, or about 1,072 people, will be cut as part of a restructuring plan aimed at rebuilding its core ride-hailing product and boosting profits. The company is also scaling back hiring plans and will eliminate 250 open job positions. Risher previously said the restructuring would be part of Lyft’s plan to “better meeting the needs of riders and drivers.” That doesn’t sound great for other programs at Lyft; The bike-share service seems to be in a particularly precarious position. However, we still …

Lyft shares get crushed on weak guidance for first quarter

Lyft layoffs to affect 26% of workforce

[ad_1] Lyft said Thursday it will cut 26% of its workforce, or about 1,072 people, as part of a restructuring plan aimed at rebuilding its core ride-hailing product and boosting profits. The company also said in a regulatory filing Thursday that it decided scale back hiring plans and will eliminate 250 open job positions. Lyft estimates that it will incur a cost of about $41 million to $47 million related to severance and employee benefits in the second quarter of 2023. The ride-hailing company also said it expects additional costs related to stock-based compensation and the corresponding payroll tax expense related to employees who were impacted by this restructuring. Last week, Lyft’s newly appointed CEO David Risher told employees in an email that the company would significantly reduce its workforce as part of a restructuring effort. Risher said the restructuring would be part of Lyft’s plan to “better meeting the needs of riders and drivers.” With an emphasis on ride-hailing, workers and industry watchers have speculated other departments such as its bike-sharing service will sustain …

China EVs rising, Tesla loses profit ground and Lyft preps for deep cuts

China EVs rising, Tesla loses profit ground and Lyft preps for deep cuts

[ad_1] The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive the full edition of the newsletter every weekend in your inbox. Subscribe for free.  Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.  If there was any doubt that China is a leader in EVs, the Shanghai Auto Show should have erased those thoughts. China is developing and producing compelling EVs and reaping the sales as a result. (Eight of the top 10 best selling EV models in China are from Chinese automakers). And unlike the U.S. market, these are not just premium and luxury brands that only a slice of society can afford. BYD, the Warren Buffet-backed Chinese automaker, unveiled its Seagull EV during the show and the unassuming vehicle attracted some of the largest crowds at the show. Industry watchers believe that this vehicle , which starts 78,000 yuan ($11,300) , is poised to become the …

Lyft to make ‘significant’ cuts across ride-hailing company

Lyft to make ‘significant’ cuts across ride-hailing company

[ad_1] Lyft’s newly appointed CEO David Risher told employees in an email Friday that the company is significantly reducing its workforce as part of a restructuring effort. Risher said the restructuring is part of Lyft’s plan to “better meeting the needs of riders and drivers.” Lyft doesn’t employ drivers who use the ride-hailing app to pick up and drop off riders. Instead, the layoffs will be directed at the company’s more than 4,000 full-time employees. Employees will learn whether they have a job or not via an email that will be sent out April 27. Lyft wouldn’t disclose the number of people who will be cut. A WSJ report, citing unnamed sources, said about 1,200 workers, 30% of its total workforce, would be affected. Risher, a former retail executive at Amazon, took over the CEO position at Lyft after co-founders Logan Green and John Zimmer stepped down last month. Risher explained in the email that he made the decision to help the company achieve its two core purposes. “Lyft has two purposes that are linked …

Washington Uber and Lyft drivers win paid family and medical leave

Washington Uber and Lyft drivers win paid family and medical leave

[ad_1] Washington’s Senate unanimously passed a bill this week that would make the state the first in the nation to grant ride-hail drivers the right to paid family and medical leave. The bill, HB 1570, builds on driver rights won in 2022’s Expand Fairness Act, which set a high statewide wage floor for drivers and established a right to protections against unjustified deactivation, worker’s compensation insurance and paid sick time. The win in Washington comes a month after drivers in California were dealt a blow when the state upheld Proposition 22, the ballot measure passed in November 2020 that classified Uber and Lyft drivers as independent contractors rather than employees. A lower court had previously ruled Prop 22 unconstitutional. Washington’s ruling could have ripple effects in other states fighting to grant gig workers employment benefits. “Today is a landmark in the fight for worker rights nationwide” said Peter Kuel, president of Drivers Union, an association of ride-hail drivers, in a statement. Kuel started driving for Uber and Lyft in 2014. “In the State of Washington, drivers …