Lyft's financial troubles propelled it into the spotlight
In 2018, Lyft co-founders Logan Green and John Zimmer gathered employees in the company's San Francisco headquarters cafeteria for a staff meeting. There, they explained that they were spending $250 million to buy Motivate, the owner of New York City's CitiBike bike-sharing program.
But employees hoped for more . For years, Lyft had battled Uber, its much larger competitor, which had expanded into food delivery and announced its entry into dozens of countries. Lyft workers were demanding that he make an ambitious move. Some were hoping executives would announce Lyft's global expansion, two former senior executives said on condition of anonymity.
That didn't happen. The bike-sharing deal is an example of what analysts and three current and former employees say was an overly cautious business strategy that has dogged Lyft since its inception. The company's decision not to deliver food or offer rides outside of North America has proven costly as it recovers from the pandemic, giving Uber a firm edge that has drawn criticism. questions about the future of Lyft.
Last week in financial results for the last three months of 2022, Lyft warned that it would be hampered by economic challenges , spooking Wall Street and sending its stock price plummeting nearly 40% to a low of $10 per share, before rebounding slightly. this week. The company is now valued at $4.2 billion, down from $22 billion at its peak.
Lyft posted record revenue of 1.2 billion in its last quarter, as well as $588 billion. million losses. But it has yet to prove that it can become a profitable business, and its recent financial troubles have sparked speculation as to whether it could be an acquisition target.
When the pandemic halted travel, Lyft had no d delivery company as a backup option.Credit...Patrick T. Fallon for The New York Times"I just looked up 'debacle' in the dictionary, and there's a Lyft sticker," said Dan Ives, an senior equity analyst at Wedbush Sec...
In 2018, Lyft co-founders Logan Green and John Zimmer gathered employees in the company's San Francisco headquarters cafeteria for a staff meeting. There, they explained that they were spending $250 million to buy Motivate, the owner of New York City's CitiBike bike-sharing program.
But employees hoped for more . For years, Lyft had battled Uber, its much larger competitor, which had expanded into food delivery and announced its entry into dozens of countries. Lyft workers were demanding that he make an ambitious move. Some were hoping executives would announce Lyft's global expansion, two former senior executives said on condition of anonymity.
That didn't happen. The bike-sharing deal is an example of what analysts and three current and former employees say was an overly cautious business strategy that has dogged Lyft since its inception. The company's decision not to deliver food or offer rides outside of North America has proven costly as it recovers from the pandemic, giving Uber a firm edge that has drawn criticism. questions about the future of Lyft.
Last week in financial results for the last three months of 2022, Lyft warned that it would be hampered by economic challenges , spooking Wall Street and sending its stock price plummeting nearly 40% to a low of $10 per share, before rebounding slightly. this week. The company is now valued at $4.2 billion, down from $22 billion at its peak.
Lyft posted record revenue of 1.2 billion in its last quarter, as well as $588 billion. million losses. But it has yet to prove that it can become a profitable business, and its recent financial troubles have sparked speculation as to whether it could be an acquisition target.
When the pandemic halted travel, Lyft had no d delivery company as a backup option.Credit...Patrick T. Fallon for The New York Times"I just looked up 'debacle' in the dictionary, and there's a Lyft sticker," said Dan Ives, an senior equity analyst at Wedbush Sec...
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