Lyft still shooting for profitability by 2021's end


一号电竞网Lyft's revenue declined 61% year over year to $339.3 million in the second quarter as its number of active riders fell to 8.7 million, compared with 21.8 million in the second quarter of 2019.

一号电竞网Despite the overall drop, rideshare demand grew throughout the quarter, and that continued into July even as Covid-19 cases spiked in many parts of the United States, co-founder and CEO Logan Green said in an earnings call. Rides in July were up 78% compared with April and up 12% compared with June, he said.

Lyft reported a net loss of $437.1 million for the quarter, compared with a net loss of $644.2 million in the second quarter of 2019. The company still aims to be profitable by the fourth quarter of 2021, and cost-cutting measures amid the pandemic mean Lyft will be able to make that goal even if rides are still down up to 25% by that point, CFO Brian Roberts said.

The company's ongoing battle with the state of California in how its drivers are classified could potentially deal another blow to revenue, however. A Superior Court judge in San Francisco earlier this week ruled that Lyft and other rideshare companies must classify its drivers as employees rather than contractors. That ruling is currently stayed until Aug. 20 as Lyft and Uber pursue appeal options, and state residents in November are voting on a proposition that, if passed, would classify drivers as contractors.

一号电竞网Lyft co-founder and president John Zimmer said the company's current projections are based on it being able to keep drivers classified as contractors in California. "If our efforts here are not successful, it would force us to suspend operations in California," he said.



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