Dive Brief:
- Lyft may be looking to shed its bike and scooter operations or find a strategic partner that would invest in it, according to a July 24 report in The Wall Street Journal.
- In a blog post the same day, Lyft wrote it has “received strong inbound interest in our bikes and scooters business,” adding that “it’s only logical for Lyft to listen to credible proposals.”
- In the blog post, Lyft also stated, however, that “We expect this part of the business to continue to be a meaningful part of Lyft’s offering now and into the future.”
Dive Insight:
Lyft had a harder time weathering the COVID-19 pandemic than its ride-sharing rival Uber, which benefited from its diversification into food delivery when ride-sharing volume plummeted and was more successful recruiting drivers as demand returned.
In November 2022, Lyft announced layoffs amounting to 13% of the company’s workforce. In April, the company’s new CEO, David Risher, told employees that “we will significantly reduce the size of the team as part of a restructuring to focus on better meeting the needs of riders and drivers.” The Associated Press reported that almost 1,100 workers would be affected.
Risher took over as CEO on March 27 as Lyft’s co-founders, Logan Green and John Zimmer, exited their CEO and president roles to serve as chair and vice chair, respectively, of the company’s board of directors. On Lyft’s May 4 Q1 earnings call, Risher said, “We haven't done the job we need to do to make sure that every time [a] person rides the bike, they get welcomed into the Lyft ecosystem, and frankly, welcome into the rideshare side of things.” He added, “We've also got some work on the economics of the bike side of our operation.”
Any change of ownership could disrupt operations in New York City, Washington, D.C., and elsewhere. More details may come to light during the company’s Q2 earnings call, scheduled for Aug. 8.
