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Lyft dropped its number of active riders in the second quarter in which the top ride division company’s revenue took a major hit due to the coronavirus pandemic, as the future of its business in California was called into question by senior managers.
Lyft had 8.7 million active riders in the three months ending July, a decline of 60 percent compared to the same period a year ago. The company reported adjusted earnings per share of 86 cents, falling short of the 99 cents expected by Wall Street analysts.
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Revenue in the second quarter fell 61 percent to $ 339 million. While Lift and ride-sharing rival Uber struggled during the pandemic, Lift CEO Logan Green said data from the first four years showed signs of a potential turnaround in the coming weeks.
Lyft reported results two days after a California judge ruled a privilege that effectively requires ride-sharing companies to identify their drivers as employees rather than as independent contractors. Uber and Lyft are in appeal. Like rival Uber, Lyft president John Zimmer said on the company’s call, Lyft could suspend services in California if the state does not reverse a recent ruling.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| LIFT | LIFT INC. | 30.52 | -0.13 | -0.42% |
In terms of revenue, CEO Logan Green said in a statement, “While rideshare rides were down sharply year-on-year in the quarter, we are encouraged by the recovery trends we are starting to see, with monthly rideshare- rides in July up 78% compared to April. ”
Noting the consequences of the pandemic, Green added, “Lyft’s results in the second quarter reflect a governance environment that was challenging not only for our core ride-sharing business, but also for our valued riders and drivers and the communities. which we serve. “
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Lyft’s second-quarter loss was $ 437.1 million below a net loss of $ 644.2 million last year. Unlike rival Uber, Lyft does not operate a food delivery company.
Shares were flat in trading after hours.
Lyft has taken a number of steps to reassure its riders and drivers of their safety during the pandemic. The company introduced a requirement that all passengers wear masks. The company celebrated a round of layoffs earlier this year in a bid to cut costs during the downturn in the ride-sharing business.
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“Our performance reinforces our belief that Lyft is taking the critical work needed to emerge from the crisis as a stronger company,” Green added.
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