Lyft’s business is half of what it was before the pandemic

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The company said on Tuesday that its revenue was down 48% from a year ago in the third quarter, to just under $ 500 million. Active runners were down 44% over the same period, to 12.5 million runners.

Lyft’s latest earnings report shows the continued negative impact of the pandemic on its business – but it also illustrates how it has rebounded since the second quarter of this year, when ridership dropped to 8.7 million of passengers.

“Our third quarter revenue increased 47% quarter over quarter, driven by a significant recovery from Active Riders,” Lyft CFO Brian Roberts said in a statement accompanying his financial results.

Roberts said the company remains focused on profitability, excluding some costs, by the fourth quarter of 2021 “even with a slower recovery.” Rival Uber has also set its sights on a measure of profitability next year.
The earnings come a week after a political victory in the home state of Lyft, California, where voters passed a voting measure that defends its business model, allowing Lyft and its peers out of the economy office to continue to treat workers as independent contractors in the state, rather than employees.
The $ 185 million campaign to keep Uber and Lyft drivers as contractors in California

Lyft Policy Director Anthony Foxx said in a statement last Wednesday that the company “stands ready to work with all interested parties, including drivers, unions and policymakers, to build a stronger safety net. solid for stage workers in the United States “.

Since going public last year, Lyft and Uber have struggled to convince investors who are concerned about their history of large losses and how they could potentially make a profit. Both companies saw layoffs before the pandemic as well as significant staff cuts spurred by the drop in transport volume once it took hold.

Lyft said it lost $ 459.5 million in the third quarter, down from $ 463.5 million a year earlier.

Lyft attempted to bring in her drivers for delivery needs, an area she had yet to embrace as ridership declined. Uber, by comparison, has its Eats delivery platform, a bright spot for the company amid the pandemic.

On a call to discuss its earnings results, Lyft made it clear that it intends to further explore the delivery space. Lyft co-founder and chairman John Zimmer said that while the company is not interested in launching its own consumer delivery platform, such as Eats, it sees new opportunities to help partners with move their goods through logistics and fulfillment.

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